Praxair Inc. (PX, Financial) filed Quarterly Report for the period ended 2010-09-30.
Praxair Inc. has a market cap of $28.13 billion; its shares were traded at around $93.5 with a P/E ratio of 20.9 and P/S ratio of 3.1. The dividend yield of Praxair Inc. stocks is 2%. Praxair Inc. had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Praxair Inc. the business predictability rank of 4-star.PX is in the portfolios of Oak Value of Oak Value Capital Management, RS Investment Management, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Westport Asset Management, Wallace Weitz of Weitz Wallace R & Co, PRIMECAP Management, Pioneer Investments, Chris Davis of Davis Selected Advisers, Tom Russo of Gardner Russo & Gardner, Tom Russo of Gardner Russo & Gardner, Dodge & Cox, Jeremy Grantham of GMO LLC.
In the third quarter 2009, Praxair recorded a net after-tax benefit of $7 million related primarily to a Federal tax amnesty program in Brazil (see Note 2 to the consolidated financial statements of Praxairs 2009 Annual Report on Form 10-K). The program required a cash outlay of $34 million in the 2009 fourth quarter and is expected to require up to an additional $60 million of cash payments in the next twelve months depending on timing of the Brazilian government consolidation process.
Gross margin in 2010 improved $83 million, or 8%, for the third quarter and increased $344 million, or 12%, for the nine months ended September 30, 2010 versus the respective 2009 periods primarily due to higher volumes. The decrease in the gross margin percentage for both the quarter and year-to-date periods to 43.1% was due primarily to the impact of higher cost pass-through and product mix.
Depreciation and amortization expense increased $10 million, or 5%, for the third quarter and increased $62 million, or 10%, for the nine months ended September 30, 2010 versus the respective 2009 periods. The quarter increase was due to depreciation associated with project start-ups. The year-to-date period also included the impact of currency.
Other income (expense) net for the quarter was a $2-million benefit in 2010 and a $10-million expense in 2009. The 2010 and 2009 quarters included a $5 million and $2 million loss, respectively, due to currency related items, related primarily to net income hedges. Other income (expense) net for the nine month period was a $9-million benefit for 2010 and a $25-million expense for 2009. The 2010 and 2009 nine month periods included a $1 million gain and a $17 million loss, respectively, due to currency related items, related primarily to net income hedges (see Note 5 to the condensed consolidated financial statements).
Diluted earnings per share (EPS) for the third quarter 2010 increased $0.19 per diluted share, or 19%, as compared to the adjusted diluted earnings per share for the same period in 2009. For the nine months ended September 30, 2010, adjusted EPS increased $0.58, or 20%, versus the respective 2009 period. The underlying increase in EPS attributable to an increase in net income Praxair, Inc. coupled with lower outstanding shares.
Read the The complete Report
Praxair Inc. has a market cap of $28.13 billion; its shares were traded at around $93.5 with a P/E ratio of 20.9 and P/S ratio of 3.1. The dividend yield of Praxair Inc. stocks is 2%. Praxair Inc. had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Praxair Inc. the business predictability rank of 4-star.PX is in the portfolios of Oak Value of Oak Value Capital Management, RS Investment Management, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Westport Asset Management, Wallace Weitz of Weitz Wallace R & Co, PRIMECAP Management, Pioneer Investments, Chris Davis of Davis Selected Advisers, Tom Russo of Gardner Russo & Gardner, Tom Russo of Gardner Russo & Gardner, Dodge & Cox, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
On January 8, 2010, Venezuela announced a devaluation of the Venezuelan bolivar and created a two tier exchange rate system. Under the new system, a 2.60 exchange rate between the bolivar and the U.S. dollar (which implies 17.3% devaluation) will apply for essential goods while an exchange rate of 4.3 (implying 50% devaluation) will apply for all remaining sectors, including Praxairs operations. In the first quarter 2010, Praxair recorded a $27 million charge ($26 million after-tax or $0.08 per diluted share) due primarily to the remeasurement of the local Venezuelan balance sheet to reflect the new official 4.3 exchange rate.In the third quarter 2009, Praxair recorded a net after-tax benefit of $7 million related primarily to a Federal tax amnesty program in Brazil (see Note 2 to the consolidated financial statements of Praxairs 2009 Annual Report on Form 10-K). The program required a cash outlay of $34 million in the 2009 fourth quarter and is expected to require up to an additional $60 million of cash payments in the next twelve months depending on timing of the Brazilian government consolidation process.
Gross margin in 2010 improved $83 million, or 8%, for the third quarter and increased $344 million, or 12%, for the nine months ended September 30, 2010 versus the respective 2009 periods primarily due to higher volumes. The decrease in the gross margin percentage for both the quarter and year-to-date periods to 43.1% was due primarily to the impact of higher cost pass-through and product mix.
Depreciation and amortization expense increased $10 million, or 5%, for the third quarter and increased $62 million, or 10%, for the nine months ended September 30, 2010 versus the respective 2009 periods. The quarter increase was due to depreciation associated with project start-ups. The year-to-date period also included the impact of currency.
Other income (expense) net for the quarter was a $2-million benefit in 2010 and a $10-million expense in 2009. The 2010 and 2009 quarters included a $5 million and $2 million loss, respectively, due to currency related items, related primarily to net income hedges. Other income (expense) net for the nine month period was a $9-million benefit for 2010 and a $25-million expense for 2009. The 2010 and 2009 nine month periods included a $1 million gain and a $17 million loss, respectively, due to currency related items, related primarily to net income hedges (see Note 5 to the condensed consolidated financial statements).
Diluted earnings per share (EPS) for the third quarter 2010 increased $0.19 per diluted share, or 19%, as compared to the adjusted diluted earnings per share for the same period in 2009. For the nine months ended September 30, 2010, adjusted EPS increased $0.58, or 20%, versus the respective 2009 period. The underlying increase in EPS attributable to an increase in net income Praxair, Inc. coupled with lower outstanding shares.
Read the The complete Report
