DOW JONES NEWSWIRES
Airgas Inc.'s (ARG) fiscal fourth-quarter profit jumped 56% as
sales to manufacturers and other customers increased.
The specialty-gas provider has posted improving results over the
past year despite several quarters of charges incurred in fending
off a hostile approach from rival Air Products Inc. (APD).
Improving industrial demand has helped Airgas' top line, allowing
the company to turn its focus to improving metrics such as cylinder
utilization.
"The manufacturing recovery that began in the central regions of
the U.S. among larger customers is now evident more broadly
throughout the country and in smaller manufacturers," Chairman and
Chief Executive Peter McCausland said. "Our medical business began
to accelerate this quarter, and utilities and petrochemical
customers, as well as customers using our products and services for
repair and maintenance operations, continued to show strength."
For the quarter ended March 31, Airgas reported a profit of
$62.6 million, or 74 cents a share, up from $40.1 million, or 47
cents a share, a year earlier. Excluding legal expenses related to
the takeover attempt and other items, adjusted earnings rose to 88
cents from 69 cents. The company in January predicted a per-share
profit of 82 cents to 86 cents a share.
Revenue rose 12% to $1.1 billion as same-store sales increased
11%. Analysts had estimated revenue of $1.08 billion.
Gross margin edged down to 54.2% from 54.4%.
Same-store sales for hardgoods rose 14% as gas and rent revenue
increased 9%.
Looking ahead, the company projected a per-share profit for the
2012 fiscal year of $3.75 to $3.90 and fiscal first-quarter
earnings of 92 cents to 97 cents. Analysts polled by Thomson
Reuters most recently expected $3.84 a share for the year and 96
cents a share in the first quarter.
Shares closed at $67.67 Wednesday and were inactive premarket.
The stock has risen 34% this year. The stock has gained 8.3%
year-to-date.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com