Airgas reported Q1 Fiscal 2015 results today (Thursday) with sales increased 3% over the prior year to $1.31bn.
First quarter Organic sales were up 1% over the prior year, with gas and rent flat and hardgoods up 2%. In the Distribution segment, organic sales were up 2% over the prior year, in line with the Company’s expectations, with gas and rent up 2% and hardgoods up 2%. Acquisitions contributed sales growth of 2% in the quarter on both a consolidated basis and in the Distribution segment.
“There were bright spots in certain sectors, such as upstream energy, transportation, and retail, but on balance, underlying business conditions remained sluggish during the quarter, as anticipated,” said Airgas President and Chief Executive Officer Michael L. Molinini.
“Strong growth in our rental welder business this quarter and increasing requests for staging of materials for energy-related construction projects indicate to us that non-residential construction activity should increase as the year progresses, providing a lift to our construction and other key end markets. In addition, sectors such as mining and heavy manufacturing that were significant headwinds in the prior year now appear to be stabilising. As such, our guidance range continues to reflect our expectation for stronger sales growth in the back half of the fiscal year, while also reflecting that we’re early in our fiscal year and some uncertainty still exists.”
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