Praxair posts 14 percent sales gain
Praxair Inc. reported first-quarter net income of $314 million, or $1.01 per share, on sales of $2.4 billion.
Quarterly sales were 14% above the previous-year quarter. Sales growth came primarily from higher overall volumes in all geographic regions and foreign currency appreciation. Volume growth was broad-based across most end-markets. Chemicals, metals and electronics showed the strongest pick-up, while growth in manufacturing is lagging. Similarly, adjusted operating profit in the first quarter of $506 million grew 14% from the prior-year quarter.
"We are seeing signs of volume recovery in all our end markets, though the strength varies significantly by geography. Asia and South America showed the strongest underlying sequential growth, while in the U.S. and Europe, recovery was slower but began to accelerate in March," said chairman and CEO Steve Angel.
For the full year, Praxair expects sales in the area of $10 billion.
In North America, first-quarter sales were $1.2 billion, 6% above the prior-year period due primarily to volume growth. By end-market, the strongest sales growth was to chemicals, metals, and electronics markets. Operating profit of $277 million grew 8% from the prior-year quarter due to higher volumes and lower fixed costs.
In Europe, first-quarter sales were $338 million compared to $303 million in the prior year.
In South America, first-quarter sales were $458 million compared to $353 million in the prior-year period.
Sales in Asia grew 43% from the prior-year quarter to $258 million.
Praxair Surface Technologies had first-quarter sales of $136 million compared to $123 million in the prior-year quarter. Sales growth was attributable primarily to an acquisition in 2009, partially offset by lower volumes of industrial gas turbine coatings. Operating profit was $19 million in the quarter versus $22 million in the prior-year period and in the 2009 fourth quarter, due to acquisition integration expenses and lower volumes, partially offset by strong productivity gains.
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