Praxair Q3 net income falls 8.5% to $325m, sales down 20%

28 October 2009 11:21  [Source: ICIS news]

LONDON (ICIS news)--Praxair’s third-quarter net income fell 8.5% to $325m (€221m) due partly to lower sales, the US-based international industrial gases firm said on Wednesday.

Sales in the third quarter were down 20% year on year to $2.28bn, with lower sales volumes partially offset by 2% higher overall pricing, the company said in a statement.

Operating profit for the three months ended 30 September was $174m, which was 68% below the $544m Praxair achieved in the 2008 third quarter, it said.

Chairman and CEO Steve Angel said business conditions stabilised globally during the quarter.

“Our base business volumes improved from the second quarter in all our geographic regions. The strongest pick-up was in Asia and South America, where government stimulus programmes have increased domestic demand and industrial production,” Angel said.

“To a lesser extent, volumes in North America and Europe also improved from the 2009 second quarter, due primarily to increased production by our metals, chemicals and electronics customers.

“Overall demand from general manufacturing markets in these regions remains relatively weak and has yet to show meaningful signs of recovery,” he added.

Praxair expects diluted earnings per share (EPS) in the range of $1.05 to $1.10 for the fourth quarter of 2009 and full-year diluted EPS to be between $3.96 and $4.01.

($1 = €0.68)

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By: Lucy Craymer
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