By Victoria Stilwell
Airgas Inc.'s (ARG) fiscal first-quarter earnings jumped 21% as
same-store sales improved, though the specialty-gas supplier warned
of helium supply chain constraints.
The company also lowered its full-year adjusted earnings
guidance to between $4.65 and $4.75 a share from its previous
expectations of $4.70 to $4.80. For the current quarter, the
company predicts adjusted per-share earnings of $1.05 to $1.09
while analysts surveyed by Thomson Reuters were looking for $1.20 a
share.
"While we expect the global helium supply chain to improve in
early calendar 2013, the year-over-year headwinds will continue to
be greater than we had originally anticipated for the remainder of
the current fiscal year," said Chief Executive Peter McCausland.
"We believe the economic recovery has indeed hit a soft patch but
expect most of our customer segments to continue to post modest
growth this year."
Airgas, which supplies canisters of oxygen, argon and other
gases to various industries, has booked double-digit profit growth
in recent quarters on a resurgence in industrial activity.
The company fought off a hostile takeover last year from rival
Air Products & Chemicals Inc. (APD), which on Tuesday reported
its fiscal third-quarter earnings surged 48% as the industrial gas
company booked business sale and acquisition-related gains, though
revenue declined.
For the quarter ended June 30, Airgas reported earnings of $90.8
million, or $1.15 a share, up from $75 million, or 94 cents a
share, a year earlier. Excluding restructuring charges and a gain
on the sale of businesses, its adjusted profit rose to $1.13 a
share from $1. The company in May predicted adjusted earnings of
$1.12 to $1.16 a share.
Revenue rose 8% to $1.26 billion, slightly below expectations of
analysts surveyed by Thomson Reuters who predicted $1.27
billion.
Operating margin widened to 12.1% from 11.8%.
Same-store sales rose 7%, while hardgoods sales increased 9%.
Gas and rent revenue increased 5%.
Shares closed Tuesday at $80.31 and were inactive in premarket
trade. The stock is up 14% in the last 12 months.
Write to Victoria Stilwell at Victoria.Stilwell@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires