Airgas, Inc. (NYSE: ARG), Radnor, PA, will implement several price increases over the next two months.
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Beginning Dec. 1, 2011, or as contracts permit, prices on bulk and packaged industrial, medical, and specialty gases will increase an average of 8 to 10 percent, 10 to 20 percent on acetylene and fuel gases, and up to 10 percent for delivery and other service charges.
Cylinder and bulk tank rental rates will increase 8 to 10 percent effective Nov. 1, 2011, or as contracts permit. Effective immediately, or as contracts permit, a surcharge on helium will be in effect.
Airgas will continue to pass along higher prices for welding hardgoods and safety products.
The actions are in response to rising raw material, energy, electricity, and labor and benefit costs, which in turn have raised the price of gases, welding hardgoods and safety products sourced from suppliers.
The increases have also raised operating costs at Airgas plants and distribution facilities, and increased the costs of cylinders, bulk tanks, plants and equipment. In addition, supply chain disruptions in certain products have resulted in higher distribution costs, and the regulatory landscape continues to change at a rapid pace, requiring extra steps to ensure compliance.
\”As the economy recovers, costs continue to rise on many fronts,\” CEO Peter McCausland said. \”In order to more efficiently meet our customers’ demands while fulfilling the safety and security requirements of our industry, we must continue to invest in our infrastructure and technologies.\”
