Praxair posts results with diluted earnings per share

Praxair posts results with diluted earnings per share

5:33 PM, 27th July 2011
Praxair posts results with diluted earnings per share
Steve Angel, Chairman and CEO, Praxair Inc.

• Sales of $2.9 billion, 13 per cent above prior-year quarter

 Diluted EPS of $1.38, up 16 per cent

 Record project backlog of $2.7 billion

 Return on capital 14.7 per cent

 Full-year 2011 diluted EPS guidance increased to $5.40 - $5.50. Third-quarter diluted EPS guidance of $1.35 to $1.40. 

DANBURY, US: Praxair Inc reported second-quarter net income and diluted earnings per share of $425 million and $1.38, 15 per cent and 16 per cent above the prior-year quarter, respectively.

Second-quarter sales were $2,858 million, 13 per cent above the previous-year quarter. Sales increased across all geographic regions with continued strong growth from manufacturing, metals and chemicals markets. Sales rose 6 per cent sequentially from the first quarter due primarily to higher volumes and price.

Operating profit in the second quarter was $627 million, up 15 per cent from the prior-year quarter, reflecting higher volumes, higher price and cost savings from productivity programmes.

“Our second-quarter results reflect continued strong growth in Asia and South America and moderate growth in North America. Our backlog of new projects under contract and construction reached a record level of $2.7 billion reflecting strong growth in energy markets and emerging economies. Earnings growth continues to outpace sales growth due to our unrelenting focus on pricing and productivity,” said Steve Angel, Chairman and CEO, Praxair Inc.

“Based on a continued, albeit modest, recovery in the second half of the year, we are increasing our guidance to $5.40 to $5.50,” added Angel.

For the full year of 2011, Praxair expects sales in the area of $11.2 billion. Full-year capital expenditures are expected to be approximately $1.8 billion, and the effective tax rate is forecasted to be about 28 per cent.

For the third quarter of 2011, Praxair expects diluted earnings per share in the range of $1.35 to $1.40.

In North America, second-quarter sales were $1,371 million, up 7 per cent from the prior-year quarter, due primarily to organic growth. Operating profit of $336 million grew 14 per cent from the prior year due primarily to productivity, price and higher volumes.

In Europe, second-quarter sales were $367 million, up 10 per cent from the prior year, primarily due to positive currency effects. Operating profit declined 5 per cent from the prior-year quarter to $69 million due to lower volumes in packaged gases and margin pressures.

In South America, second-quarter sales of $611 million grew 25 per cent versus the prior-year quarter. Operating profit was $139 million, 22 per cent above the prior-year quarter, due to higher volumes, price, productivity and currency effects.

Sales in Asia were $341 million in the quarter, up 22 per cent from the prior year driven by strong growth in China, India and Korea. Operating profit was $56 million, 27 per cent above the prior-year quarter, due primarily to higher volumes and price.

Praxair Surface Technologies had second-quarter sales of $168 million, up 19 per cent from the prior-year quarter. Operating profit of $27 million in the quarter was 23 per cent above the prior-year period due primarily to higher volumes.

© WOC News

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