Praxair Q4 net income falls 61% to $133m on Spain tax settlement

26 January 2011 11:57  [Source: ICIS news]

LONDON (ICIS)--Praxair’s fourth-quarter net income fell by 61% year on year to $133m, mainly due to an income tax settlement in Spain, the US-based industrial gases producer said on Wednesday.

Excluding the impact of the tax settlement, adjusted net income for the fourth quarter came in at $388m, 14% above the prior-year quarter, said Praxair.

Sales in the fourth quarter were $2.62bn, up 9% from $2.41bn in the previous year’s quarter, due to 8% volume growth.

The company said sales increased across all regions on the back of growth in electronics, manufacturing, energy and metals markets.

Sales rose 3% sequentially from the third quarter due to higher volumes and positive currency effects, it added.

Adjusted operating profit rose 10% year on year to $563m due to higher volumes and reduced costs.

For the full year of 2010, adjusted net income was $1.48bn, up 18% from adjusted 2009 net income. Full-year sales were $10.1bn, up 13% due primarily to higher volumes.

“As we look forward, we expect our project backlog to grow as a result of the significant number of opportunities we are seeing in energy and emerging markets,” said chairman and CEO Steve Angel.

“We expect to continue to generate strong cash flow which will fund new projects around the world and return cash to our shareholders in the form of dividends and share repurchases,” he added.

For the first quarter of 2011, Praxair said it expected diluted earnings per share in the range of $1.23 to $1.28.

For the full year of 2011, it said sales were expected to be in the area of $11bn.

($1 = €0.73)

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By: Hilde Ovrebekk
+44 20 8652 3214

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