Airgas on Fire

" streets -- this week we've been talking about earnings report after earning report for the most part. Not exactly pleasant news so on a Friday want to buck the trend a little bit and bring you. Something of a success story companies' profits have been holding up pretty well air -- the largest US distributor of industrial medical specialty gases. It's making its major profits and CEO Peter precautions with this this morning to talk about that. Why guys folded up the last profit report did look pretty strong stock we should point out it's got hit like the rest of the market down thirty somewhat percent this year but. What's holding up about your profits year over year supposed to other companies and industrial like businesses they're getting hit hard."

" I think the first reason is that we have very diversified customer base almost every kind of business. Clinic hospital whatever uses some kind of industrial medical. Especially gas. The second reason is that we've identified five strategic products. Rightful gases medical gases CO two dry especially gases and safety equipment. That are all growing faster than our core business and the economy and actually we've experienced 11% growth in most product categories. And now they represent 40%. Of our total sales to. And other marketing programs that we bought on brought on acquisition efficiencies we've acquired or synergies. We've acquired over a billion dollars in sales in the last 2430 months of the rolling in. And also bunch of efficiency programs that are really getting traction. All right so efficiency programs mean you're cutting back on your costs and trying to manage things for slowing economy. Well not so much that is more about. Managing our food supply chain better way of new software to route our trucks. About its putting in a national network of testing facilities -- test -- ten million industrial medical especially gas cylinders and things like that so we can bring network back inside. At a lower cost how bad -- things in the economy. Do you think because your CEO is dealing as you said in this right ask you this with a wide range different businesses this is the business activity and you. You talked to a lot of different people we hear these dire forecasts of things of the worst since they've been since the -- as. Well our sales as of yesterday are holding up nicely and you know I don't know what's going to happen where daily sales company so we don't have that much visibility. And but the anecdotal evidence that we're getting is that that things aren't going to be as bad on the business side as as they. Are on the consumer side yes -- why some businesses is a consumer led downturn you think in new businesses. Generally speaking that you deal with -- hold often in businesses are still getting hit done certainly access to credit too difficult for example why would businesses hold up you think. Well I know they say access to credits been difficult we haven't seen any real deterioration. In our DS so on accounts receivable. And I think this recession is different than the last one and 98 to 2002 were business just got. Killed and companies were moving parts factories offshore that was the opposite to consumer held up okay and the businesses really got hammered right so so did this time it's it's going to be able with a different. For you. But we expect to be impacted so were ready for. How how much do you think sales will be down next year compared to this year it's gonna do mean you're gonna get hit -- to your point everybody nobody's in the infamous right -- get ready for you cut back cut jobs cut costs would be good. Well there's there's certain things were starting to look at right now like over time and and travel and entertainment expense and things like that and work. We're getting ready but our worst year ever on same store sales declines was was less than 2% and we've never had a down year. In sales are on our gas and rent business which generates most of my profits so. You know we don't expect. Any thing. Really really drastic and been around since the early eighties you were here was when late nineties early 2002001001. Was worst year after none of them immigrants feel okay so. Well good luck with everything you know who holds up Korea and thanks -- come again thank you -- calls -- guess CEO with us today in the."