Praxair Inc.'s (PX) fourth-quarter earnings surged as the
industrial-gas supplier saw a comparably weak quarter last year
that was hampered by a large tax-related charge, while the company
also unveiled a $1.5 billion buyback program.
The company forecast downbeat 2012 earnings of $5.70 to $5.90 a
share, on revenue of $11.7 billion to $12 billion. Analysts polled
by Thomson Reuters most recently expected earnings of $5.98 and
revenue of $12.1 billion.
For the first quarter, Praxair expects a profit of $1.33 to
$1.38, compared with market predictions of $1.41. It said it
anticipates negative currency impacts year-over-year of about 7
cents.
Praxair, the largest industrial gas company in North America and
South America, has maintained better earnings on recent strength in
Asia and South America, though North America remains its biggest
market, making up about half its sales.
For the latest period, Praxair reported a profit of $420
million, or $1.38 a share, up from $133 million, or 43 cents a
share, a year earlier. Excluding a Spanish tax settlement-related
charge of 80 cents a share in the year-earlier quarter and other
special items, income rose to $1.36 from $1.25. In October, the
company forecast earnings of $1.33 to $1.38 a share.
Revenue rose 6.6% to $2.8 billion, just below expectations of
$2.84 billion.
Gross margin narrowed to 42.8% from 43.1%.
Sales in North America rose 7% to $1.4 billion on strong sales
growth to manufacturing, energy, chemicals and metals markets, and
operating profit grew 17%. South America sales improved 8%, as Asia
sales rose 6%. Sales in Europe were up 12% on the acquisition of
increased ownership of Yara Praxair in Scandinavia.
Shares closed Tuesday at $109.10 and were inactive premarket.
The stock is up 7.3% over the past three months.
-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108;
ben.rubin@dowjones.com