Air Products and Chemicals, Inc. reported unaudited consolidated financial results for the first quarter ended December 31, 2017. For the quarter, the company reported sales of $2,216.6 million against $1,882.5 million for the same period of last year. Operating income was $460.7 million against $328.3 million for the same period of last year. Income from continuing operations before taxes was $454.5 million against $336.6 million for the same period of last year. Net income attributable to the company was $154.6 million against $299.8 million for the same period of last year. Net income attributable to the company from continuing operations was $155.6 million against $251.6 million for the same period of last year. Diluted earnings per common share attributable to the company were $0.70 against $1.37 for the same period of last year. Diluted earnings per common share attributable to the company from continuing operations were $0.70 against $1.15 for the same period of last year. These results included a net $239 million, or $1.09 per share, charge related to the U.S. Tax Cuts and Jobs Act. For the quarter, on a non-GAAP basis, adjusted net income from continuing operations of $395 million increased 23% and diluted adjusted EPS from continuing operations of $1.79 increased 22% over prior year. Excluding a $0.06 benefit from the new Tax Act, EPS increased 18%. The adjusted EPS benefit from the Tax Act in the first quarter was $0.06 per share. Capital expenditures - non-GAAP basis were $500.1 million against $252.0 million for the same period of last year. Cash provided by operating activities was $564.1 million against $574.3 million for the same period of last year. Additions to plant and equipment was $256.6 million against $239.2 million for the same period of last year. Non-GAAP results for the company in the fiscal first quarter of 2018 exclude a net expense of $239 million due to the Tax Act, which includes an expense of $453 million for the cost of the deemed repatriation tax and adjustments to the future cost of repatriation from foreign investments, and a benefit of $214 million, primarily from the re-measurement of the company's net U.S. deferred tax liabilities at the lower corporate tax rate. For the quarter, adjusted EBITDA was $735 million increased 12% over the $654.9 million in the prior year, driven by the higher volumes and Asia pricing. Capital expenditures for continuing operations—GAAP basis was $493.7 million against $248.0 million a year ago. Earnings after-tax-non-GAAP was $412.4 million against $351.2 million a year ago.

The company expects fiscal 2018 adjusted EPS of $7.15 to $7.35 per share, up 13 to 16% over prior year, including an estimated $0.20 to $0.25 benefit from the Tax Act. The capital expenditure forecast for fiscal year 2018 is expected to be in the range of $1.2 to $1.4 billion on a GAAP and non-GAAP basis. This guidance excludes Lu'An and any other significant future acquisitions. Air Products expects the full-year adjusted EPS benefit of the Tax Act to be $0.20 to $0.25 per share, with an expected adjusted full-year tax rate of 20 to 21%.

For the fiscal 2018 second quarter, the company expects adjusted EPS of $1.65 to $1.70 per share, up 15% to 19% over the fiscal 2017 second quarter, including an estimated $0.05 benefit from the Tax Act. This guidance excludes the Lu'An project and any other significant future acquisitions.

For fiscal year 2019, the company expects a similar net impact as the full year effect of the lower U.S. rate is approximately offset by the repeal of the U.S. production activities deduction and credits for foreign taxes and other changes that take effect in 2019. So the company would use about a 20% to 21% book effective tax rate to model Air Products going forward.