4 EXHIBIT 99.1 For More Information: James R. Rapp (610) 902-6224 AIRGAS, INC. REPORTS FIRST QUARTER RESULTS - STRONG AFTER-TAX CASH FLOW - SALES UP 21% IN QUARTER - PLANNED REPOSITIONING EXPENSES CONTINUE TO IMPACT PROFITS RADNOR, Pennsylvania, July 30, l998 -- Airgas, Inc. (NYSE-ARG) today reported sales of $401 million for the quarter ended June 30, 1998, an increase of 21% from $331 million in the first quarter last year. After-tax cash flow increased 8% to $34.9 million, or $.48 per share, compared to $32.3 million, or $.47 per share, for the same quarter last year. Net earnings for the first quarter of fiscal 1999 were $11.3 million, or $.16 per share, compared to $12.2 million, or $.18 per share, a year ago. Repositioning costs of approximately $.03 per share, primarily for computer conversions and upgrades and personnel expenses, were incurred in the quarter. Earnings were helped by a penny per share resulting from the reversal of excess reserves associated with the previously announced first quarter divestiture of two non-strategic businesses. Peter McCausland, Airgas' Chairman and Chief Executive Officer, said "We continue to make important progress toward our goal of becoming a multi-billion dollar, world-class distribution company. While profits were impacted by planned repositioning costs, sales increased 21% and after-tax cash flow increased 8%. We have acquired another seven distributors so far this year and have monetized two non-strategic businesses. Most important, our Repositioning Airgas For Growth initiative is gaining momentum and is on schedule and on budget." 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. 1 5 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 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 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 other factors described in the Company's reports, including Form 10-K dated March 31, 1998, filed by the Company with the Securities and Exchange Commission. Consolidated statements of earnings and consolidated condensed balance sheets follow on pages 3 and 4. 2 6 AIRGAS, INC. CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in thousands, except per share data) (Unaudited) Three Months Ended June 30, 1998 1997 (a) ____ ____ Net sales: Distribution $291,962 $271,269 Direct Industrial 68,591 36,845 Manufacturing 40,220 23,298 _______ _______ Total net sales 400,773 331,412 _______ _______ Costs and expenses: Cost of products sold (excluding depreciation, depletion and amortization) Distribution 146,677 137,463 Direct Industrial 50,674 26,005 Manufacturing 18,145 11,286 Selling, distribution and administrative expenses 131,251 105,343 Depreciation, depletion and amortization 21,597 17,815 Special charge (b) (1,000) - _______ _______ Total costs and expenses 367,344 297,912 _______ _______ Operating income: Distribution 27,656 28,694 Direct Industrial 884 1,104 Manufacturing 3,889 3,702 Special charge (b) 1,000 - ______ ______ Total operating income 33,429 33,500 Interest expense, net (14,806) (12,108) Other income, net 188 473 Equity in earnings (loss)of unconsolidated affiliates 754 (115) Minority interest ( 66) (309) ______ ______ Earnings before income taxes 19,499 21,441 Income tax expense 8,224 9,215 ______ ______ Net earnings $ 11,275 $ 12,226 ====== ====== Per share data: Basic earnings per share $ .16 $ .18 Diluted earnings per share $ .16 $ .18 Weighted average shares outstanding: Basic 70,300 66,800 Diluted 72,100 69,200 (a)Certain reclassifications have been made to previously issued financial statements to conform to the current presentation. (b)Represents the reversal of excess reserves that were established at March 31, 1998 in connection with the divestiture of non-strategic businesses. 3 7 AIRGAS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Amounts in thousands) (Unaudited) June 30, March 31, 1998 1998 __________ ________ ASSETS Trade accounts receivable, net $ 194,928 $ 186,342 Inventories 163,688 154,937 Prepaids and other current assets 22,919 25,555 _________ _________ TOTAL CURRENT ASSETS 381,535 366,834 Property, plant and equipment, net 687,313 687,304 Goodwill, net 420,804 410,753 Other non-current assets, net 174,191 176,583 _________ _________ TOTAL ASSETS $1,663,843 $1,641,474 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt 8,898 12,150 Accounts payable, trade 85,413 84,602 Accrued expenses and other current liabilities 114,099 128,806 _________ _________ TOTAL CURRENT LIABILITIES 208,410 225,558 Long-term debt 855,016 830,845 Deferred income taxes 126,254 121,356 Other non-current liabilities 34,448 36,842 Stockholders' equity 439,715 426,873 _________ _________ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,663,843 $1,641,474 ========= ========= 4