gasworld Business Intelligence provides you with the latest analysis of Airgas’ Q3 2015 earnings reports.
Airgas headlines
- Total reported sales at $1.38bn in CYQ3, again showed slower growth than recent peak at +1%. Sequentially up nearly +2% on prior quarter.
- Flat organic growth, but combined with +1% contribution from acquisitions. Negative contribution of -1% from volumes, offset by similar positive impact from pricing.
- Gases up +3% – similar to recent trend – largely offset by worsening decline in Hardgoods sales at -5%.
- Reported Operating Income down -3% YoY, its weakest performance for several years.
- Operating Margin showed seasonal improvement, but continued downward trend of recent quarters – margin pressure from weak organic sales in Distribution business.
- Selling, Distribution & Administration costs up +3% YoY, including over 1% for acquisitions – remainder reflects inflation plus costs of new initiatives.
- Free Cash Flow significantly up (+15%) on previous year.
- EPS guidance for FY16 shows narrower increase of +1% to +3%, based on organic sales growth in low single digits.
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