gasworld Business Intelligence provides you with the latest analysis of Airgas’ Q1 2016 earnings reports.
Airgas headlines
- Total reported sales for FY2015/6 at $5.3bn were marginally up YoY.
- Q1 sales were virtually flat YoY representing an improvement against Q4 performance.
- Sequentially, Q1 was also flat vs prior quarter.
- Reported operating income down -10% YoY at $132m in Q1, after a $14m charge for merger costs. Underlying operating income was similar to prior year.
- Operating margin remained at around the low point of recent years.
- EBITDA marginally up YoY, driven by higher charges for both depreciation and amortisation.
- Net income down -8.5% for FY2015/6, however dividend increase of 9% maintained throughout the year.
- As previously announced, Airgas has agreed that, subject to the satisfaction of certain conditions, Air Liquide will acquire Airgas for a total enterprise value of around $13.4bn, including debt assumed.
- The acquisition process is proceeding on schedule for completion in Q2/3 of 2016. In anticipation of the merger, Airgas has not conducted a quarterly or annual earnings conference call and reduced the financial information issued with annual results for FY2016 recently available. Airgas has incurred costs of $29m associated with the acquisition up to the end of March.
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