Praxair Acquires Weldco - Analyst Blog
August 17 2011 - 7:15AM
Zacks
Praxair Inc. (PX)
recently announced the acquisition of the assets of Cincinnati,
Ohio-based gas distributor, Weldco Inc. for an undisclosed amount.
The transaction was carried out by Praxair’s subsidiary, Praxair
Distribution Inc.
With this acquisition, Praxair
intends to extend its foothold in one of the top 20 wielding
markets of the US. The target company specializes in the
distribution of industrial and specialty gases; besides providing
ancillary wielding equipment, supplies and services.
We believe Praxair’s expansionary
efforts will be well rewarded for the company in the years ahead
and enable it to achieve its long-term goals. Annual organic sales
growth target is set at 8%-12%, with emerging markets, including
South America, Asia, and Mexico, accounting for an estimated target
of 45% of total sales by 2015.
Globally, demand for industrial
gases is on the rise with the growth in their application areas.
Hydrogen for refining; oxygen for healthcare; and nitrogen and
carbon dioxide for oil and gas production are being increasingly
used.
Praxair recently reported its
financial results for the second quarter 2011 with adjusted
earnings per share of $1.38 in the quarter, above the Zacks
Consensus Estimate of $1.37 and up 16% year over year.
The current Zacks Consensus
Estimate for the third quarter is $1.39, representing a year-
over-year increase of 14.93%. Estimate for the fiscal year 2011 and
2012 is $5.47 and $6.27, respectively.
Praxair faces stiff competition
from Air Products and Chemicals Inc.(APD) and
Airgas Inc. (ARG). We currently maintain a Neutral
recommendation on Praxair.
AIR PRODS & CHE (APD): Free Stock Analysis Report
AIRGAS INC (ARG): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
Zacks Investment Research
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From Jul 2023 to Jul 2024