After May 2012, yet another gas price revision was announced
by industrial gas producer and supplier,
). The price revision will apply to all the divisions and
subsidiaries of the company, effective January 1, 2013.
AIR PRODS & CHE (APD): Free Stock Analysis
PRAXAIR INC (PX): Free Stock Analysis Report
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Prices of nitrogen, oxygen and carbon dioxide have been increased
up to 15% while argon and hydrogen prices have been raised to
20%. Facility fees or monthly bulk product charges and cylinder
rental rates have gone up by 15% while prices for hardgoods have
escalated by 15% and helium up to 30%.
These revised prices will apply to the bulk and packaged
industrial, electronics, specialty and medical gas customers in
the United States, Canada and Puerto Rico. Higher raw material
costs and maintenance of supply/demand balance were the prime
catalysts driving this revision.
It is also worth mentioning that recently, Praxair's prime
Air Products & Chemicals Inc.
) announced increases in specialty gas and process materials that
are supplied by its Electronics business. The revised prices will
be effective from January 1, 2013.
Long-term prospects look promising for Praxair with increasing
application areas for industrial gases. Chemical processing,
petroleum refining, metal production, fabricating, electronics
and health care industries are widely using these gases. By 2015,
the company targets to achieve annual organic sales growth of
8%-12%; operating profit growth of 10%-15%, and earnings growth
The current Zacks Consensus Estimate for the fourth quarter
stands at $1.38, representing a year-over-year increase of 1.76%.
Estimates for years 2012 and 2013 are $5.57 and $6.18, reflecting
annual growth of 2.5% and 11.1%, respectively.
We currently maintain a Neutral recommendation on Praxair. The
stock also currently bears a Zacks #4 Rank, implying a short-term
(We are reissuing this article to correct a mistake. The
original article, issued earlier today, is no longer to be relied