Airgas sales drop due to “challenging economic conditions”
Airgas, Inc. reported sales of $1.3 billion for its third quarter ended December 31, 2015 – a decrease of three percent compared to the prior year. Airgas attributed the decline to “challenging economic conditions.”
Third quarter organic sales were down four percent compared to the prior year, with gas and rent down one percent and hard goods down ten percent. In the distribution segment, organic sales were down five percent compared to the prior year, with gas and rent down one percent and hard goods down ten percent.
“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 high single digits. However, our diversified customer base, continued strength in non-residential construction, and 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.
“The quarterly results demonstrated the resilience of our gas business during difficult economic times. In addition, cash flow remains strong, with year-to-date free cash flow up 12 percent over the prior period,” he said.