Airgas, Inc. (ARG) said that, as a result of anticipated sales shortfall, it now estimates that earnings per share for the fourth quarter ending March 31, 2015 will be in the range of $1.13 to $1.16, compared to previous earnings per share outlook of $1.25 to $1.30. Analysts polled by Thomson Reuters expect the company to report earnings of $1.27 per share for the fourth-quarter. Analysts' estimates typically exclude special items.
Based on sales to date and current trends, the company now expects year-over-year organic growth for its fourth quarter to be in the range of 1% to 2%, compared to growth of 6% to 7% which was assumed in its guidance.
While the company anticipated near-term sales challenges due to the uncertainty caused by the significant and rapid decline in oil prices and the impact of the strong dollar on manufacturers that export, the company said it is experiencing greater than anticipated declines in growth rates in our Energy & Chemicals and Manufacturing customer segments. It has also been impacted by challenging weather conditions throughout much of the country.
"We are seeing an economy that is clearly weaker than it was in the December quarter, and the level of uncertainty in the marketplace makes it difficult for us to predict our near-term sales outlook..... We remain optimistic that the U.S. economy and Airgas will ultimately benefit as lower energy costs filter through the large and diverse customer base we serve, but we cannot count on strong organic growth in the near-term," said Executive Chairman Peter McCausland.
Looking ahead for fiscal 2015, the company now expects earnings per share to be between $4.83 - $4.86. Analysts expect annual earnings of $4.97 per share. The company said in February that it expected annual earnings per share of $4.95 to $5.00.
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