UpdatePraxair’s Q4 2013 net income up 14.5% to $474m, sales up 10%

29 January 2014 12:43  [Source: ICIS news]

LONDON (ICIS)--US-based Praxair's Q4 2013 net income increased by 14.5% year on year to $474m on higher sales, the company said on Wednesday.  

Sales were up by 10% to $3bn, excluding currency translation effects, while diluted earnings per share (EPS) in the fourth quarter stood at $1.59, up 15% from the same period in the previous year.

The Danbury, Connecticut-based company attributed the increases in the fourth quarter of 2013 to growth across all its geographic segments on the back of higher energy, metals, chemicals and manufacturing markets, as well as its acquisitions in North America and Europe.

By geographies, Praxair experienced in North America Q4 sales of $1,6bn, up 11% year on year, while organic sales grew 6% on the back of growth in the energy end market, mainly driven by hydrogen project start-ups for refinery customers.

In Europe, Q4 sales stood at $404m, 11% up from the same quarter in 2012, with organic sales up 2% due to higher volumes including project start-ups and higher pricing.

South America was the only region were Q4 sales decreased compared to the same quarter in 2012, with 1% fall to $481m, although the company did not specify the reasons for the decrease.

Sales in Asia were $394m in Q4 2013, up 5% compared to the fourth quarter of 2012 on the back of growth in on-site and merchant volumes due to project start-ups.

By business segments, Praxair Surface Technologies had Q4 2013 sales of $164m, 1% up compared to Q4 in 2012.

“[In 2013] We completed three world-scale steam methane reformers for hydrogen supply to refineries under long-term contracts and quickly integrated the NuCO2 US beverage carbonation business which has exceeded our expectations in all areas, including growth and operating profit,” said Steve Angel, chairman, president and CEO.

Praxair reported 2013 full-year net income of $1.76bn, up 4% compared with 2012, as sales rose 8% year on year to $11.9bn.

Diluted EPS in 2013 stood at $5.87, up 5% from a year earlier, and the company guidance for EPS in 2014 is expected between $6.25-6.55, an increase of 5-10% year on year.

Praxair said it expects the global economy to continue to grow at a modest pace in 2014 and said volumes in southern Europe are stabilising. The company expects growth in Brazil to be positive although uneven.

“We expect strong cash flow generation to fund new projects and return cash to shareholders in the form of dividends and share repurchases,” said Angel.

By: Jonathan Lopez
+44 208 652 3214

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