Praxair 3Q Earnings Fall 8.5% But Beat Estimates
DOW JONES NEWSWIRES
Praxair Inc. (PX) beat its guidance to post a 8.5% decline in third-quarter
earnings on strength in Asia and South America as the industrial-gas maker
replaced its full-year earnings guidance with a 5-cent possible range.
The company now sees $3.96 to $4.01 a share, compared with its September view
was $3.99.
Weak demand for industrial gases in slumping chemical and semiconductor
industries has led Praxair to cut jobs and close businesses. It saw pockets of
sequential improvement in Asia and South America in the previous period, while
European and North American volumes showed signs of stabilization.
And in the most recent period, the strongest improvement was again in Asia and
South America, according to Chairman and Chief Executive Steve Angel, who added
that business conditions stabilized globally.
Praxair earnings fell to $325 million, or $1.04 a share, from $355 million, or
$1.11 a share, a year earlier. The latest results included a $7 million tax
benefit worth 2 cents a share.
In July, the company projected between 95 cents and $1 a share, below
analysts' estimates at the time.
Revenue slid 20% to $2.29 billion. A survey of analysts by Thomson Reuters
anticipated revenue of $2.3 billion.
Gross margin jumped five percentage points to 44.2%.
Underlying North American sales dropped 12% on lower volumes. However, both
sales and operating profit rose from the previous quarter.
Excluding foreign-exchanges effects, sales fell 8% in Europe and 6% in South
America, but Asia posted 3% sales growth from the year earlier and 15% growth
from the prior quarter.
Looking ahead, the company projects current-quarter earnings of $1.05 to $
1.10, in line with analysts' expectations for $1.07.
Shares in Praxair, which affirmed its full-year revenue view, closed Tuesday
at $81.53 and weren't active premarket. The stock has risen 37% so far this
year.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@
dowjones.com
(END) Dow Jones Newswires
10-28-090648ET
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