Airgas posts 1% sales gain
Airgas Inc. reported net earnings of $98.0 million for its fiscal second quarter, compared to $98.3 million in the same period last year.
Earnings per diluted share of $1.31 for the quarter were up 1% compared to the prior year earnings per diluted share of $1.30.
Second quarter sales increased 1% over the prior year to $1.4 billion. Organic sales were flat compared to the prior year, with gas and rent up 3% and hardgoods down 5%. In the Distribution segment, organic sales were down 1% compared to the prior year, with gas and rent up 2% and hardgoods down 5%. In the All Other Operations segment, organic sales were up 8%, primarily driven by increased sales in the refrigerants, CO2 and dry ice businesses. Acquisitions contributed sales growth of 1% in the quarter on both a consolidated basis and in the Distribution segment and 8% in the All Other Operations segment.
"Our results continue to reflect the challenging industrial economy with sales to customers in our energy and chemical, and manufacturing and metal fabrication end markets down year-over-year in the mid single digits. However, our diversified end customer markets and continued strength in non-residential construction, together with tight expense management, helped to mitigate the impact of the sales declines in those end markets," said Airgas president and chief executive officer Michael L. Molinini.
Selling, distribution, and administrative expenses increased 3% over the prior year, with operating costs associated with acquired businesses accounting for approximately half of the increase. The balance of the increase primarily reflects the incremental costs to support strong organic sales growth in the All Other Operations segment. Selling, distribution, and administrative expenses in the Distribution segment increased 0.6% over the prior year, excluding the impact of operating costs associated with acquired businesses.
From the beginning of its fiscal year through October, Airgas has acquired 12 businesses with aggregate annual sales of approximately $80 million.
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