Praxair Inc.'s (PX) fourth-quarter profit fell 61% on tax
charges that masked better-than-expected revenue from cost-cutting
and growing sales in emerging markets.
Praxair also boosted its dividend 11% over the previous quarter
to 50 cents, payable March 15, calling it the 18th consecutive
annual dividend increase for the company.
Praxair has seen results improve in recent quarters as demand
for its chemicals, metals and electronics rebounded.
The industrial gases firm operates in more than 30 countries and
is the biggest company of its kind in North and South America.
South America and Asia have turned in double-digit revenue growth
for the past few quarters and did the same last quarter, both
reporting gains of 12%.
Sales in North America, still the company's largest market by
revenue, rose 11% on higher volumes.
"As we look forward, we expect our project backlog to grow as a
result of the significant number of opportunities we are seeing in
energy and emerging markets," Chairman and Chief Executive Steve
Angel said.
Rivals Airgas Inc. (ARG) and Air Products & Chemicals Inc.
(APD) both posted improved results last week thanks to stronger
demand amid the economic recovery.
Praxair posted a profit of $133 million, or 43 cents a share,
compared with $340 million, or $1.09 a share, a year earlier.
Excluding an 82-cent charge for an income-tax settlement,
Praxair's earnings were $1.25 a share, beating the firm's
projection last month of $1.18 to $1.23 a share.
Revenue increased 9% to $2.62 billion, compared with estimates
from analysts polled by Thomson Reuters of $2.58 billion.
Volume grew 8%, mostly on strong sales in the electronics,
manufacturing, energy and metals markets.
Gross margin remained flat at 43.1% as divestiture and a
prior-year tax amnesty program offset the effect of cost-cutting
programs.
The industrial gas-maker projected 2011 earnings will come in at
$5.25 to $5.40 on revenue of about $11 billion. Analysts most
recently expected $5.35 a share on $11.01 billion.
For the current quarter, Praxair forecast earnings of $1.23 to
$1.28 a share, bracketing analysts' forecasts for $1.25.
Shares closed at $91.24 on Tuesday and were inactive premarket.
The stock is up 16% over the past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com;