By Lisa Beilfuss
Airgas Inc. said its profit slipped in its fiscal fourth
quarter, as the company faced challenges from a decline in the
price of oil, the strength of the U.S. dollar and adverse weather
in some parts of the country.
The Radnor, Pa.-based company supplies canisters of oxygen,
argon and other gases to various industries.
Larger competitor Air Products & Chemicals Inc., which tried
to acquire Airgas several years ago, similarly cited foreign
exchange headwinds and lower energy prices as significant
challenges during the period in Thursday's earnings report.
Last month, Airgas slashed its estimate for the quarter for the
second time, citing a weak economy, bigger-than-expected declines
in its manufacturing segment and adverse weather. Thursday's
results met those lowered expectations.
"The level of uncertainty in the marketplace makes it difficult
for us to predict our near-term sales outlook," said Chief
Executive Peter McCausland. "While we are encouraged by some bright
spots, such as the increased activity of many of our construction
customers, the overall sluggishness in the industrial economy
tempers our near-term optimism."
For the year, Airgas predicts earnings of $4.85 to $5.15 a share
on organic sales growth rate in the low- to mid-single digits. The
estimate is below analysts' average estimate of $5.24 a share.
For the current quarter, the company expects to book a per-share
profit of $1.14 to $1.18 on organic growth in the low-single
digits. Analysts are looking for $1.21 in profit per share.
In all, the company reported a profit of $87.7 million for the
three months ended March 31, down from $88.4 million a year
earlier. On a per-share basis, earnings fell to $1.15 from
$1.17.
Revenue rose 2.7% to $1.3 billion. Organic sales, which strip
out foreign exchange fluctuations, among other items, rose 2%.
Acquisitions contributed sales growth of 1% in the quarter, the
company said.
Airgas shares, down 9% this year, were inactive during premarket
trading.
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