Airgas reports 13% sales increase
Airgas reported fiscal fourth quarter sales were $1.24 billion, an increase of 13% over the prior year.
Same-store sales grew 11% in the quarter, with hardgoods up 15% and gas and rent up 9%. Acquisitions contributed sales growth of 2% in the quarter.
Fourth quarter adjusted earnings per diluted share were a record $1.11, an increase of 26% from $0.88 in the prior year.
"Our performance was very strong this quarter across most of our core business, with particular strength in manufacturing, petrochemical and energy customers, and noticeable improvement in our construction customer base, despite a weak new project market," said Airgas chief executive officer Peter McCausland. "Our product line adjacency businesses also performed well relative to our expectations, highlighted by strong pre-season demand in our refrigerants business that contributed nicely to our earnings this quarter."
For the full year, sales increased 12% from the prior year to $4.7 billion. Total same-store sales increased 10%, with hardgoods up 14% and gas and rent up 7%, while acquisitions contributed 2% sales growth for the year.
Full year adjusted earnings per diluted share were a record $4.11, an increase of 23% from $3.35 in the prior year.
The company also announced that following its annual meeting in mid-August, Airgas founder Peter McCausland will assume the role of executive chairman of the board, and current executive vice president and chief operating officer Michael L. Molinini will succeed him as president and chief executive officer.
In his expanded role, Molinini will continue to lead the company's operations and information technology initiatives, while also assuming responsibility for finance and human resources. McCausland will continue to lead the development of Airgas' growth strategies. In addition, McCausland will continue to serve as chairman of the company's Management Committee and will retain responsibility for corporate development, risk management and governance.
"Mike and I have worked together for 15 years; he is a proven leader with an outstanding record of accomplishment both here at Airgas and in his previous roles," said McCausland. "I am confident that Mike is the right person to serve as Airgas' next CEO and that he will continue to build on our 30-year track record of operational excellence and shareholder value creation. Mike and I, together with our CFO Bob McLaughlin, will continue to be actively engaged with our shareholders and the rest of the investment community. As Airgas' founder and largest shareholder, I am committed to making sure that this plan is successful, and I am looking forward to working with Mike and the entire management team in the years ahead. As I always say, the best time at Airgas is now."
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
