RADNOR, PA - January 27, 2011 - Airgas, Inc. (NYSE:ARG) today announced that beginning March 1, 2011, or as contracts permit, its operating units will increase prices on bulk and packaged industrial, medical, and specialty gases 10 - 12% on average, and up to 10% for delivery and other service charges. Cylinder and bulk tank rental rates will increase 8 - 10% effective February 1, 2011, or as contracts permit.
The actions are in response to rising product costs from suppliers as well as operating costs at Airgas plants and distribution facilities, driven by higher power, fuel, raw material, and labor and benefits costs. Increases in metals prices are also driving up costs for cylinders, bulk tanks, gas handling plants and equipment, and increasing regulatory and compliance costs factored into the pricing actions as well.
"Costs are rising while capacity utilization is increasing in the wake of growing demand," said Airgas Chief Executive Officer Peter McCausland. "We continue to invest in our infrastructure in order to more efficiently meet our customers' demands while fulfilling 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.
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 March 1, 2011, February 1, 2011 or as contracts permit; costs rising while capacity utilization is increasing in the wake of growing demand; and continuing to invest in our infrastructure in order to more efficiently meet our customers' demands while fulfilling the safety and security requirements of our industry. We intend 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. We assume no obligation to revise or update any forward-looking statements for any reason, except as required by law. 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, 2010, subsequent Forms 10-Q, and other documents filed by the Company with the Securities and Exchange Commission.
Jay Worley (610) 902-6206
Barry Strzelec (610) 902-6256