A week after announcing price increases for industrial
gases-including nitrogen, oxygen, carbon dioxide, among
others-industrial gas producer and supplier,
) raised prices for bulk purchase of liquid helium for its
The change, which implies an increase of up to 30%, will be
effective from January 1, 2013 for all bulk helium transactions
in Europe, Latin America and Asia. 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 bulk and liquid helium prices for its
North American customers. The price revision will come into
effect from January 1, 2013 and will enable Air Products to cover
rising costs to maintain supply and secure new sources for its
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
AIR PRODS & CHE (APD): Free Stock Analysis
PRAXAIR INC (PX): Free Stock Analysis Report
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The current Zacks Consensus Estimate for the fourth quarter
stands at $1.38, representing a year-over-year increase of 1.8%.
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
Sell rating. Air Products & Chemicals has a Zacks #3 Rank