UPDATE: Praxair Lowers Full-Year Outlook

Praxair

reported a 7% rise in its third-quarter earnings and lowered its forecast for the year. Praxair now expects full-year profit of $6.23 to $6.30 per share, versus its earlier outlook of $6.30 to $6.45 per share. It now projects sales of $12.30 billion to $12.40 billion, versus $12.40 billion to $12.70 billion. For the fourth quarter, the company expects earnings of $1.53 to $1.60 per share, versus analysts' estimates of $1.65 per share. The Danbury, Connecticut-based company reported a quarterly profit of $477 million, or $1.62 per share, versus a year-ago profit of $445 million, or $1.49 per share. The company had expected a profit of $1.58 to $1.65 per share. Its sales climbed 4.4% to $3.14 billion, while organic sales gained 5%. However, analysts were expecting earnings of $1.63 per share on revenue of $3.17 billion. Sales in North America surged 3.2% to $1.64 billion, while Europe sales came in at $385 million in the quarter. South America sales rose to $523 million in the quarter, while sales in Asia gained 11% to $426 million. Praxair Surface Technologies sales rose to $171 million from $160 million. Operating profit rose 5% to $711 million, while operating profit as a percentage of sales widened to 22.6%. Praxair paid dividends of $189 million and repurchased $100 million of stock, net of issuances during the quarter. Chairman and Chief Executive Officer Steve Angel said, “Praxair achieved record earnings per share and again delivered a solid quarter with operating profit growth outpacing sales growth, despite continued slower growth in most emerging markets.” Praxair shares rose 0.15% to close at $125.70 yesterday.