Praxair Q2 net profit climbs 0.9% on stronger North American business

25 July 2012 11:54  [Source: ICIS news]

LONDON (ICIS)--Praxair’s second-quarter net profit climbed by 0.9% to $429m (€356m) as North American business compensated for weakness in Europe and South America, the US-headquartered industrial gases company said on Wednesday.

Sales for the period were down 1.6% year on year at $2.81bn, but grew by 6% excluding negative foreign currency and cost pass-through effects, it added.

“Underlying sales growth was driven by strong volumes and higher pricing in North America in most end markets, including energy, manufacturing and metals,” Praxair said.

“Sales in Asia reflect slower growth offset by new plant start-ups for chemicals and metals customers. Europe and South America sales continued to be impacted by overall weak macro-economic conditions and significant foreign currency headwinds, it added.

Second-quarter operating profit was up 1.4% year on year at $636m with an 11% growth in North America partially offset by lower operating profit from other regions.

“Our backlog of large projects with customer contracts remains strong at $2.5bn and new customer proposal activity remains at healthy levels,” CEO Steve Angel said.

Praxair expects diluted earnings per share (EPS) in the $1.35-1.40 range in the third quarter and in the $5.60-5.70 range for the full year.

“Excluding the impact of currency, full-year diluted earnings per share growth would be approximately 9% to 11% versus 2011,” it said.

Diluted earnings per share in the second quarter were $1.42.

($1 = €0.83)

By: Nigel Davis
+44 20 8652 3214

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