New project start-ups drive up Praxair Q3 net income, sales

30 October 2013 10:44  [Source: ICIS news]

LONDON (ICIS)--Praxair’s net income for the third quarter in 2013 increased by 3.5% year on year to $445m (€325m) on higher sales, the US-headquartered industrial gases company said on Wednesday.

The third-quarter net income figure includes a pension settlement charge of $9m, the company added.

Sales for the three months ended 30 September were $3.01bn, 9% above the prior-year quarter, as organic sales increased 7% with growth across all geographic segments.

Praxair said sales were lifted because on-site sales in North America and Asia had strong growth, driven by new project start-ups, including refinery hydrogen supply.

Organic sales in South America reflected higher price and growth including the metals, manufacturing and healthcare end markets, the company added, while acquisitions in North America and Europe contributed 3% growth in the quarter. Diluted earnings per share rose to $1.49 compared with $1.43 in the third quarter of 2012.

Adjusted operating profit in the third quarter rose 9% year on year to $679m, driven by higher overall volumes, higher pricing and acquisitions, partially offset by negative currency translation effects, Praxair said.

Chairman, president and CEO Steve Angel said: “On-site project start-ups in Asia and North America, including refinery hydrogen supply, drove solid volume growth in the quarter.

“We are beginning to reap the benefits of capital projects contracted after the recession, but just coming on stream now,” he added.

“We are cautious about volume growth in our base business in the fourth quarter as we do not expect much growth, if any, in industrial production in North America and Europe. Brazil is stabilising and growth in China and the rest of Asia continues to be solid,” Angel said.

For the full year of 2013, Praxair expects diluted earnings per share to be in the range of $5.80-5.85 and full-year sales in the area of $12bn.

($1 = €0.73)

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

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