DOW JONES NEWSWIRES
Airgas Inc.'s (ARG) fiscal fourth-quarter profit fell 29% on
charges as sales decreased in the company's core gas products
business and margins fell.
The specialty-gas provider also projected first-quarter earnings
of 70 cents to 72 cents a share, including 2 cents of charges, and
a fiscal-year profit excluding charges of $3.05 to $3.15 a share.
Analysts' average earnings estimates were 72 cents a share for the
first quarter and $3.04 a share for the year. Airgas also expects
same store-sales growth in the mid- to high-single digits for the
year given the signs of economic recovery.
"The economic recovery appears to be building momentum, as daily
sales rates improved sequentially for the second consecutive
quarter, and March was our first positive same-store sales month
since November 2008," said Chairman and Chief Executive Peter
McCausland.
Airgas has suffered from soft demand especially from its
manufacturing clients as major plant turnarounds and contractor
maintenance remained slow.
Meanwhile, it has been the subject of a $5.1 billion hostile
takeover effort from bigger rival Air Products & Chemicals Inc.
(APD). The bid was made public after Airgas released weak quarterly
results in February.
For the quarter ended March 31, Airgas reported a profit of
$40.1 million, or 47 cents a share, down from $56.5 million, or 68
cents a share, a year earlier. The latest results included 21 cents
a share in legal and other charges. The company in January
predicted earnings of 67 cents to 71 cents a share, below analysts'
then-estimates.
Revenue decreased 1.2% to $980.4 million as same-store sales
decreased 3%. Analysts estimated revenue of $976 million.
Gross margin fell to 54.1% from 54.9%.
Shares closed at $63.68 Wednesday and were inactive premarket.
The stock has risen 34% this year. The Air Products offer is for
$60 a share.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com