Industrial gas producer and supplier,
) announced price increases of industrial, specialty and medical
gases for its customers in the United States, Canada, Mexico and
Puerto Rico. The revised rates will be applicable to the bulk and
packaged gas customers, effective Jan 1, 2014.
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Prices of nitrogen, oxygen and carbon dioxide have been increased
by up to 12% while argon and hydrogen prices have been raised up
to 15%. Facility fees or monthly bulk product charges and
cylinder rental rates have gone up by 15% while prices for
hardgoods have escalated by 5% and helium up to 20%. Prices of
electronic gases have also been raised up to 20%.
Higher raw material costs, investments in infrastructural
developments and maintenance of supply/demand balance were the
prime factors driving this revision.
It is worth mentioning that a week ago for similar reasons,
Praxair's prime competitor, Air Products & Chemicals Inc.
(APD) announced an increase in price for fluorinated gases and
other process materials supplied by its Electronics business.
Long-term growth prospects are bright for Praxair especially on
the back of growing demand for industrial gases for use in
diverse industries, including hydrogen for refining; oxygen for
healthcare; and nitrogen and carbon dioxide for oil and gas
production. The company's year-to-date return is roughly 13.3%.
Also, customers' preference for Praxair's world class technology,
high quality products and gas supply services raises optimism for
solid earnings growth, going forward. Currently, we anticipate
earnings to grow 11.6% in the next 5 years.
Praxair Inc. has a market capitalization of $36.8 billion and
carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the
Asahi Kasei Corporation
Johnson Matthey plc
E. I. du Pont de Nemours and Company
). While Asahi Kasei and Johnson Matthey carry a Zacks Rank #1
(Strong Buy), E. I. du Pont de Nemours and Company holds a Zacks
Rank #2 (Buy).