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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
December 18, 1998
AIRGAS, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 1-9344 56-0732648
_______________ _______________________ _____________
(State or other (Commission File Number) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation)
259 North Radnor-Chester Road, Suite 100 Radnor, PA 19087-5283
_____________________________________________________ __________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (610) 687-5253
_____________
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Item 5. Other Events.
____________
On December 18, 1998, Airgas, Inc. reported its earnings outlook for the
third quarter ending December 31, 1998, as described in the press release
attached as Exhibit 99 and incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
__________________________________________________________________
(a) None
(b) None
(c) Exhibits.
99 Press Release dated December 18, 1998
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Signatures
__________
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AIRGAS, INC.
BY: /s/ Scott M. Melman
_______________________
Vice President &
Chief Financial Officer
DATED: December 18, 1998
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EXHIBIT 99.1
AIRGAS REPORTS SOFTNESS IN SALES AND EARNINGS
RADNOR, PA, December 18, 1998 -- Airgas, Inc. (NYSE - ARG) announced today
that sales have continued to soften in the fiscal third quarter (which ends
December 31, 1998). Same-store sales in the October-November period were
slightly below the prior year. Lower revenues, coupled with the high level
of repositioning activity and expense, will likely result in after-tax cash
flow (net earnings plus depreciation, amortization and deferred income taxes)
of $.42 - $.47 per share compared with $.48 per share last year, and earnings
from operations of $.07 - $.12 per share, compared to the $.17 per share
reported in last year's third quarter. Completion of the previously announced
divestiture of the calcium carbide and carbon products manufacturing
operations, expected late in the quarter, would result in a gain of
approximately $.19 per share.
Chairman and Chief Executive Officer Peter McCausland said, "Unfortunately,
several segments of the U.S. industrial economy which Airgas serves have
slowed dramatically at the same time that we are experiencing a high level of
expenses associated with our Repositioning program and computer conversions.
We see weakness in important customer segments such as oil and gas exploration
and production, agricultural and farm machinery, and forest and paper
products. In response to the weakening in these segments, we are taking
actions to reduce future investments in, and accelerate the benefits of, the
Airgas Direct Industrial infrastructure-build. In addition, we are
implementing a company-wide cost improvement program. We are restricting
acquisitions to industrial gas distributors. We continue to divest non-core
businesses. We are aggressively managing capital expenditures and have
targeted working capital improvements."
Airgas is committed to making near-term improvements in financial performance
while not jeopardizing the longer term ability to better meet the changing
customer needs driven by consolidation of customer segments and aggressive
initiatives by customers in supply chain management. Airgas, with its
national network and extended product and service offerings will be ready to
meet future customer requirements.
Airgas expects to report its fiscal third quarter results on January 28, 1999.
Airgas, Inc. is the largest distributor of industrial, medical and specialty
gases and related equipment in the United States. Its distributor network
includes over 700 locations in 44 states.
Forward-Looking Statements
This press release may contain statements that are forward-looking, as that
term is defined by the Private Securities Litigation Reform Act of 1995 or by
the Securities and Exchange Commission in its rules, regulations and releases.
Airgas intends that such forward-looking statements be subject to the safe
harbors created thereby. All forward-looking statements are based on current
expectations regarding important risk factors, and the making of such
statements should not be regarded as a representation by Airgas or any other
person that the results expressed therein will be achieved. Important factors
that could cause actual results to differ materially from those contained in
any forward-looking statement include underlying market conditions, continued
growth in same-store sales, costs and potential disruptive effects of the
"Repositioning for Growth" initiative, implementation of information
technology projects, the success and timing of intended divestitures, and
factors described in the Company's reports, including Form 10-Q, dated
September 30, 1998, filed by the Company with the Securities and Exchange
Commission.
CONTACT: Airgas, Inc.
Jim Rapp, (610) 902-6224 or
Visit our web site at www.airgas.com
