Business Services Industry
Airgas Announces Pricing Actions Effective August 1, 2008
Business Wire, June 30, 2008
RADNOR, Pa. -- Airgas, Inc. (NYSE:ARG) today announced that beginning August 1, 2008, or as contracts permit, its operating units will increase prices on gases and equipment. Prices will increase, on average, as follows:
* 20% for bulk and cylinder acetylene, argon, and hydrogen
* 15% for bulk and cylinder oxygen, nitrogen, carbon dioxide, helium, and specialty gases
* 15% for cylinder and bulk equipment rental fees
Prices will also increase for hardgoods and safety supplies, and delivery and other service charges.
These actions are being implemented in response to increases in product costs from suppliers and rising operating costs at Airgas plants and distribution facilities, driven by higher raw material, energy, electricity, and labor costs. Rising metal prices are also driving up costs for cylinders, bulk tanks, gas handling plants, and equipment.
"Costs continue to escalate rapidly, while strong demand is sustained across our customer base," said Airgas Chairman and Chief Executive Officer Peter McCausland. "Airgas associates are working hard every day to enhance our supply chain and meet our customers' needs. We will continue to invest in our infrastructure so we can meet the demands of our customers, improve operating efficiencies, and fulfill the safety and security requirements of our industry."
About Airgas, Inc.
Airgas, Inc. (NYSE:ARG), through its subsidiaries, is the largest U.S. distributor of industrial, medical, and specialty gases, and hardgoods, such as welding equipment and supplies. Airgas is also one of the largest U.S. distributors of safety products, the largest U.S. producer of nitrous oxide and dry ice, the largest liquid carbon dioxide producer in the Southeast, and a leading distributor of process chemicals, refrigerants, and ammonia products. More than 14,000 employees work in over 1,100 locations, including 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, 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: announced price increases for the Company's products and services beginning August 1, 2008, or as contracts permit; anticipated rising costs; and investing in our infrastructure to meet customer demands, improve operating efficiencies and fulfill the safety and security requirements of our industry. 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 us 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 Company's inability to successfully implement the price increases, including our customers' acceptance of increased prices; an economic downturn; increased industry competition; adverse changes in customer buying patterns; increased energy costs or metal prices in amounts higher than anticipated; catastrophic weather events; significant political and economic uncertainties associated with current world events; and other factors described in the Company's reports, including its Form 10-K dated March 31, 2008 and other forms filed by the Company with the Securities and Exchange Commission.
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