Airgas Announces Pricing Actions Effective April 1, 2007
February 26, 2007 at 16:05 PM EST
Airgas, Inc. (NYSE: ARG) today announced that effective April 1, 2007, or as contracts permit, its operating units will increase prices on packaged and bulk gases, and other products. Prices will increase, on average, as follows:
Effective immediately, Airgas also will raise rental rates for cylinders and bulk tanks and other delivery and service charges by 8-15% and will continue to pass along higher pricing for hardgoods and safety products.
Higher electricity and energy prices have led to substantial increases in product costs as well as operating costs at Airgas fill plants and other facilities. The company also has seen higher prices for cylinders, bulk tanks, equipment, and welding consumables, due to metal prices, which all factored into the pricing actions.
“We are facing rising costs, even though the escalation of the past year has moderated,” said Airgas Chairman and Chief Executive Officer Peter McCausland. “We continue to invest in our infrastructure to improve operating efficiencies, meet the demands of our customers, and fulfill the safety and security requirements of our industry. Airgas associates are working hard every day to meet our customers’ needs in a very challenging environment.”
About Airgas, Inc.
Airgas, Inc. (NYSE: ARG) is the largest U.S. distributor of industrial, medical, and specialty gases, welding, safety and related products. More than 11,000 associates work in more than 900 locations nationwide, 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, please visit www.airgas.com.
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 effective April 1, 2007, or as contracts permit; anticipated rising costs and tight supply conditions; improving our operating efficiencies to contain rising costs; and investing in our infrastructure to meet customer demands and safety 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 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 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 Form 10-K for our fiscal year ended March 31, 2006, subsequent Forms 10-Q, and other documents filed by the Company with the Securities and Exchange Commission.