Airgas Inc.'s (ARG) fiscal first-quarter profit rose 16% as
increased hardgoods sales offset higher expenses.
The specialty-gas provider also raised its full-year earnings
guidance to a range of $3.90 to $4.05 from its May view of $3.75 to
$3.90. For the second quarter, Airgas expects earnings of 99 cents
to $1.03 cents a share, as analysts most recently forecast earnings
of 98 cents.
The company has posted improving results over the past year as
industrial demand helped drive top-line results and enabled the
company to focus on improving metrics such as cylinder utilization.
Airgas had incurred several quarters of charges as it fended off a
year-long hostile approach from rival Air Products & Chemicals
Inc. (APD), which withdrew its $5.9 billion offer earlier this
year.
"Although more than a year old, the economic recovery has been
slow, and the strength displayed in manufacturing-intensive regions
of the U.S. and in our hardgoods business is indicative of the
early stages of a recovery," said Chief Executive Peter
McCausland.
Airgas reported a profit of $74.8 million, or 93 cents a share,
up from $64.8 million, or 76 cents a share, a year earlier.
Excluding charges related to restructuring, pension withdrawal and
other items, adjusted earnings rose to 99 cents from 83 cents. The
most recent period included restructuring charges of $13.3 million.
The company in May predicted a per-share profit of 92 cents to 97
cents a share.
Revenue rose 11% to $1.2 billion, boosted by acquisitions, as
same-store sales increased 9%. Analysts had estimated revenue of
$1.15 billion.
Operating margin widened to 11.8% from 11.6%. Expenses rose
10%.
Same-store sales for hardgoods rose 13% as gas and rent revenue
increased 7%.
Shares were closed at $68.50 Wednesday and were inactive in
premarket trading. The stock is up 4.6% over the past 12
months.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com