US Praxair Q4 2011 net profit more than triples to $420m

25 January 2012 12:02  [Source: ICIS news]

LONDON (ICIS)--US-based Praxair's fourth-quarter 2011 net profit more than tripled to $420m from $133m the year before on the back of higher sales, it said on Wednesday.

Sales for the three months ending on 31 December rose by 6.6% year on year to $2.80bn (€2.16bn), as the company signed a record number of new contracts for projects and demand increased across all geographic regions, it added.

Higher volumes and prices also contributed to better sales figures, the company said.

Praxair produces, sells and distributes atmospheric and process gases, as well as high-performance surface coatings. It is the largest industrial gases company in North and South America.

The group’s operating profit during the fourth quarter grew by 22% compared with the same period the year before, to $618m.

“Praxair again delivered strong growth combined with industry-leading profitability,” said chairman and CEO Steve Angel.

For the full year of 2011, reported net income was $1.67bn, up by 40% from 2010, while sales grew by 11% year on year to $11.25bn.

“We signed a record amount of new contracts in 2011 and finished the year with a backlog of $2.7bn of new projects under construction which will come on-stream in 2012, 2013, and 2014,” Angel added.

Looking ahead into 2012 Angel remained positive, particularly for the North American energy, manufacturing and materials industries that Praxair serves, and the growing economies in Asia and South America.

“We expect strong project activity again in 2012 and we remain confident in our ability to execute in a manner our customers and shareholders have grown to anticipate,” he said.

For the full year of 2012, Praxair expects sales in the area of $11.7bn–12bn, up by 4–7% year on year.

On an underlying basis, Praxair expects to sustain sales growth of 8–12%, similar to 2011, it said.

($1 = €0.77)

By: Franco Capaldo
+44 (0)20 8652 3214

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