Industrial gas producer and supplier,
) subsidiary, Praxair Surface Technologies won a 10-year contract
from Messier-Bugatti-Dowty (MBD). Financial terms of the
agreement between the parties have not been disclosed.
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The decade-long contract requires Praxair Surface Technologies to
provide thermal spray coating services on MBD's airframe
component programs. Praxair will operate through an airframe
production line in Changzhou, its China facility, where
production is expected to begin in 2013. Praxair's services will
replace chrome painting and enable MBD to make more environment
friendly airframe components.
Praxair Surface Technologies supplies high-performance coatings
that protect metal parts from wear, corrosion and high heat. The
segment accounts for roughly 6% of the company's total revenue.
Such important contracts/agreements strengthen the company's
position in this line of business and also enhance the level of
its performance in the quarters ahead.
Long-term growth prospects are bright for Praxair, with its
strategic acquisitions, dividends and share buyback policy, and
contract wins/joint ventures all representing a boon. These will
help the company in achieving its long-term target of annual
organic sales growth of 8%-12% by 2015.
The current Zacks Consensus Estimate for the fourth quarter 2012
is $1.38, representing a year-over-year increase of 1.8%.
Estimates for 2012 and 2013 are $5.57 and $6.18, reflecting
annual increase of 2.5% and 11.1%, respectively.
The stock also carries a Zacks #3 Rank, implying a short-term
(1-3 months) Hold rating. Its prime competitor
Air Products & Chemicals Inc.
) has a Zacks #4 (Sell) rating. Estimate for the December ending
quarter currently stands at $1.29 per share.