Airgas, Inc.
259 N. Radnor-Chester Road
Suite 100
Radnor, PA 19087-5283
AIRGAS NEWS RELEASE www.airgas.com
________________________________________________________________________
Exhibit 99.1
Investor Contact: Media Contact:
_________________ ______________
Melissa Nigro (610) 902-6206 James Ely (610) 902-6010
melissa.nigro@airgas.com jim.ely@airgas.com
FOR RELEASE: IMMEDIATELY
AIRGAS ANNOUNCES $3 BILLION SALES GOAL FOR FISCAL 2008
RADNOR, PA - NOVEMBER 11, 2004 -- Airgas, Inc. (NYSE: ARG)
Chairman and Chief Executive Officer Peter McCausland today
is announcing at the Company's annual analyst meeting in
Tampa that Airgas has set fiscal year 2008 targets of $3
billion sales, 10-11% operating margins and 11-12% return on
capital. The company also expects to pass key milestones of
$250 million after-tax cash flow and $140 million free cash
flow in fiscal year 2006, as well as $400 million EBITDA in
fiscal year 2007.
"In fiscal 2001, our sales and operating margin were $1.6
billion and 7.2%, respectively," commented McCausland. "This
year, we expect to report sales of $2.3 billion with an
operating margin of 9%. We delivered these results in a
very weak industrial market. Today, the business outlook is
very good, and we have many acquisition opportunities."
McCausland added, "We completed two industry-transforming
acquisitions in the last two and a half years and have
emerged as the clear leader in the $9 billion U.S. packaged
gas and welding hardgoods market. We are focused on the
future and will pursue our goals by following a consistent
strategic direction."
President and Chief Operating Officer Glenn Fischer commented
that the integration of the BOC business is progressing
smoothly. He also commented on an improving pricing
environment and sales momentum in strategic growth platforms
of bulk, medical and specialty gases, safety products and
strategic accounts.
Senior Vice President and Chief Financial Officer Roger
Millay outlined financial expectations including:
o FY05 diluted earnings per share of $1.19 to $1.27,
including BOC integration/restructuring costs of $0.05 per
share
o FY06 BOC EPS accretion of $0.08-$0.10, including modest
integration/restructuring costs
o BOC business to be at a "full integration" run-rate of 14-
15% EBITDA margin by mid-FY06
Millay also commented on the Company's commitment to strong
controllership and enhancing its financial profile through a
strong free cash business model and multiple earnings levers.
The presentation materials and the reconciliations for the
non-GAAP financial measures presented are available on the
Internet at http://www.shareholder.com/arg/slides.cfm
ABOUT AIRGAS, INC.
Airgas, Inc. is the largest distributor of industrial,
medical and specialty gases and welding equipment and one of
the largest distributors of safety supplies in the United
States. Its integrated network of about 900 locations
includes branches, retail stores, gas fill plants, specialty
gas labs, production facilities and distribution centers.
Airgas also distributes its products and services through
eBusiness, catalog and telesales channels. Its national
scale and strong local presence offer a competitive edge to
its diversified customer base. For more information on
Airgas, please visit www.airgas.com.
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. These statements include, but
are not limited to, statements regarding: the Company's
targets for fiscal 2008 sales of $3 billion, operating
margins of 10-11% , and 11-12% return on capital;
anticipated milestones of after-tax cash flow of $250
million and $140 million free cash flow in fiscal 2006
and $400 million EBITDA in fiscal 2007; the Company's
expectations of fiscal 2005 sales of $2.3 billion,
operating margin of 9% and diluted earnings per share of
$1.19 to $1.27; the outlook for business conditions,
improving pricing and sales momentum; acquisition
opportunities; the expectation that the BOC business will
be integrated by mid-FY06 with earnings accretion of
$0.08 to $0.10 per share and an EBITDA margin run-rate of
14%-15%; and the Company's commitment to strong
controllership and enhancement of its financial profile.
The Company 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 should
not be regarded as a representation by the Company 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: the success of the
Company's ability to grow sales and market share; the
cost of integrating the BOC business into the Company's
operations; the successful integration of the BOC
business; an economic downturn; increased industry
competition; adverse changes in customer buying patterns;
significant fluctuations in interest rates; political and
economic uncertainties associated with current world
events; and other factors described in the Company's
reports, including Form 10-K dated March 31, 2004 and
Forms 10-Q dated June 30, 2004 and September 30, 2004
filed by the Company with the Securities and Exchange
Commission.
###