) reported its financial results for the fourth quarter 2012 with
adjusted earnings per share coming in at $1.38; 2 cents above the
year-ago earnings of $1.36 and in line with the Zacks Consensus
For 2012, adjusted earnings per share were recorded at $5.57, way
above the year-ago earnings of $5.43 but in line with the Zacks
Consensus Estimate. Including certain non-GAAP items, GAAP
earnings for the year were $5.61 per share.
Earnings for both the quarter and the year were within
management's predicted range of $1.35-$1.40 and $5.54-$5.59,
Total revenue in the fourth quarter was $2,799 million, up 0.1%
year over year as favorable price and acquisition impacts were
offset by negative foreign currency translation.
During the quarter, healthy performance at manufacturing, energy,
and metals markets helped push North American revenue by 2% to
$1,416 million. Revenue in Europe declined 5% to $363 million
with the fall largely triggered by a negative foreign currency
Revenue in South America decreased 9% to $484 million while that
in Asia was up 12% to $374 million, driven by a volume growth in
India, China and Korea. Surface Technologies revenue was $162
million in the quarter versus $160 million in the year-ago
For 2012, total revenue was $11,224 million, compared with
$11,252 million in 2011.
Cost of sales in the quarter plummeted 0.9% year over year and
represented 56.6% of the total revenue. Operating profit was down
slightly to $616 million while operating margin stood at 22.0%
versus 22.1% in the year-ago quarter.
Exiting the fourth quarter, Praxair's cash and cash equivalents
increased 45.4% sequentially to $157 million while long-term debt
balance also shot up 4.6% to $6,685.0 million.
Cash flow generated from operating activities in the fourth
quarter amounted to $879 million, up from $791 million in the
year-ago quarter. Capital spending shot up 2.4% to $586 million,
with a major portion being invested for a new production plant
Praxair pursues a consistent strategy of returning cash to
shareholders through dividend payments and share repurchases.
During the fourth quarter 2012, the company paid $163 million in
dividends and repurchased shares worth $185 million, net of
Along with the quarterly results, the company's Board of
Directors declared a 9% increase in its quarterly dividend rate
that rose from 55 cents to 60 cents per share. The revised
dividend will be paid on March 15, to shareholders of record on
For the first quarter of 2013, management projects earnings per
share to be within $1.35-$1.40 per share range.
For 2013, earnings per share are expected to be within
$5.85-$6.10, reflecting a 5%-10% increase from the 2012 level.
Sales are expected to be roughly $12 billion; project backlog
remains strong at $2.6 billion range; anticipated to contribute
4%-6% growth in the year.
Capital spending is expected to be in the range of $1.8-$2.0
billion and effective tax rate guidance is projected to be 28%.
Praxair Inc. is the largest industrial gas producer and supplier
in the Americas and one of the leading gas producing companies
worldwide. The stock currently carries a Zacks Rank #4 (Sell).
The company's prime competition
Air Products & Chemicals Inc.
), with a Zacks Rank #2 (Buy), also came out with its fiscal
first quarter 2013 (ended December 31, 2012) results today.
Earnings per share posted were $1.30, up from $1.26 reported in
the year-ago quarter and a cent above the Zacks Consensus
Estimate of $1.29. Other stocks in the industry worth mentioning
). These stocks carry a Zacks Rank #1 (Strong Buy) and Zacks Rank
#2 (Buy), respectively.
AIR PRODS & CHE (APD): Free Stock Analysis
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BASF SE (BASFY): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
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