Airgas 2Q Earnings Down 25%, 3Q Profit Target Below Views
DOW JONES NEWSWIRES
Airgas Inc. (ARG) reported a 25% drop in fiscal second-quarter earnings as the
largest distributor in the U.S. of industrial, medical and specialty gases
continued to see weakened demand but higher margins.
Revenue fell short of analysts' expectations, and the company projected
earnings this quarter of 67 cents to 70 cents a share. Analysts' average
estimate was 71 cents, according to Thomson Reuters.
Airgas has been cutting costs amid the downturn, lowering costs some $57
million the past year. After the prior quarter's results, Standard & Poor's
Ratings Services upgraded Airgas amid its cost-cuting.
For the quarter ended Sept. 30, earnings fell to $54.5 million, or 65 cents a
share, from $72.8 million, or 86 cents a share, a year earlier. The latest
quarter included 3 cents in debt-extinguishment and pension charges. Revenue
dropped 17% to $962.3 million as same-store sales slide 19%.
Analysts anticipated earnings of 67 cents and revenue of $999 million.
Gross margin rose to 55.7% from 52% amid lower commodity costs.
Shares of Airgas, which narrowed its fiscal-year earnings target, closed
Wednesday at $45.95 and were inactive premarket. The stock is up 24% the past
year.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; kevin.kingsbury@
dowjones.com
(END) Dow Jones Newswires
10-29-090708ET
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