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Airgas Fiscal 4th-quarter Profit Falls 12 Percent

The Associated Press

RADNOR, Pa. (AP) — Airgas Inc., a distributor of industrial and specialty gases and welding and safety-related products, said its fiscal fourth-quarter profit fell 12 percent as its customers suffered in a slow economy.

The company said it earned $56.5 million, or 68 cents per share, for the quarter ended March 31, down from $64.2 million, or 76 cents per share, during the year-earlier period. Sales fell 8.7 percent to $992.1 million from $1.09 billion a year earlier.

Analysts surveyed by Thomson Reuters were expecting a profit of 65 cents per share on revenue of $1.02 billion.

Chairman and CEO Peter McCausland said the company's operating margin "held up relatively well," falling to 11.5 percent from 12.1 percent last year.

He said the low sales volumes of the fourth quarter have continued into April, "and with few signs of recovery in the near term, we are cautious in our outlook for fiscal 2010." He said the company's flexible cost structure and ability to generate cash "should prove beneficial even if conditions deteriorate further."

The company said it expects to earn 62 cents to 67 cents per share in the first quarter. For the full year of fiscal 2010, it expects to earn $2.60 to $2.90 per share. It warned that economic conditions "offer limited visibility into future sales and earnings, which should be taken into consideration when evaluating the Company's guidance."

Analysts are expecting a first-quarter profit of 70 cents per share and full-year earnings of $3.08 per share.

For the full year, Airgas earned $261.1 million, or $3.12 per share, up from $223.3 million, or $2.66 per share during the prior year. Revenue rose to $4.35 billion from $4.02 billion a year earlier.

Airgas shares fell 48 cents to close at $43.72 before the results were released.