Airgas Inc. F2Q08 (Qtr End 09/30/08) Earnings Call Transcript

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2008-10-24 14:05:16.0

Tags: Deutsche Bank AG, Call Transcript, Earnings, Airgas Inc., Question-and-Answer SessionToday, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, Deutsche Bank AG, Call Transcript, Earnings, Airgas Inc., Question-and-Answer SessionToday, Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Today's question and answer session will be conducted electronically. [Operator Instructions] And we will take our first question from David at Deutsche Bank.

David Begleiter - Deutsche Bank Securities

Good morning. Peter, just on distribution volume, which you said was flat in the quarter, are you expecting that volume to be down in the back half of the year?

Peter McCausland

Well, it's hard to say, because we have seen no impact on our sales from everything that's going on on Wall Street. But I mean, it could, it could happen and we think, and Bob could fill you in on what impact it might have on our EPS and how it impacts our range.

Bob McLaughlin

Really over the last year and a half there has been some moderation in pockets of our business that we have seen. And, certainly price has helped, but the lower-end of our guidance does build into it, you know, approximately three plus percent of moderation with respect to the current trends, volume trends that we're seeing in the business.

David Begleiter - Deutsche Bank Securities

Would that take that volume to negative in the back half of the year?

Bob McLaughlin

It could in certain categories.

David Begleiter - Deutsche Bank Securities

And just remind us, in distribution gas and rent, how much is gas, how much is rent?

Peter McCausland

Rent represents approximately 12% to 15% of the revenue.

David Begleiter - Deutsche Bank Securities

Thank you very much.

Operator

And our second question today is from Mike Harrison with First Analysis.

Mike Harrison - First Analysis

Hi, good morning.

Peter McCausland

Morning.

Mike Harrison - First Analysis

Pete, I was wondering if you could walk through some of the components that were driving the 20% same store sales growth in all other. Obviously there were, there were some components more in the 10% range and some had to be in the 30% range. What was growing faster than that average and what was lower.

Peter McCausland

Well, ammonia and refrigerants were the two big drivers. And part of that was driven by price and part of it was driven by volume. They tend to be more volatile businesses than our core distribution business. And dry ice was also up and that was driven by just general business growth, but also the hurricane accounted for like a couple million, a million and a half dollar of sales or so of additional sales. But we get hurricanes every year now it seems, so I guess it's somewhat unusual, but that was part of it.

 

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