Praxair, Inc. has a market cap of $31.27 billion; its shares were traded at around $105.16 with a P/E ratio of 18.9 and P/S ratio of 2.8. The dividend yield of Praxair, Inc. stocks is 2.1%. Praxair, Inc. had an annual average earning growth of 11.2% over the past 10 years. GuruFocus rated Praxair, Inc. the business predictability rank of 4.5-star.
Highlight of Business Operations:Adjusted net income-Praxair, Inc. decreased $10 million, or 2%, for the quarter due to lower operating profit. For the nine-month period, adjusted net income increased $15 million, or 1%. Adjusted EPS of $1.39 for the quarter compares to $1.40 in the 2011 quarter. Adjusted EPS is 1% below prior year, due to lower net income, partially offset by a lower outstanding diluted share count due to the companys net repurchase of common stock. For the nine months, adjusted EPS of $4.19 is 3% above the prior year of $4.07.
Segment sales decreased $25 million, or 2%, for the third quarter and increased $80 million, or 2%, for the nine months ended September 30, 2012 versus the respective 2011 periods. In the quarter, sales grew $53 million, or 4%, due to increased pricing and acquisitions of packaged gas distributors. Volumes in the quarter were flat compared to the prior year as higher volumes to the manufacturing, metals and energy end-markets were offset by weaker volumes to the chemicals and electronics end-markets. Negative currency, primarily the Mexican Peso and Canadian Dollar against the U.S. Dollar, and cost pass-through, primarily lower natural gas prices passed through to hydrogen customers, reduced sales by 6%. For the nine month period, sales increased $275 million, or 7%, excluding currency and cost pass-through. Volumes, pricing and acquisitions increased sales by 4%, 2% and 1%, respectively, and were partially offset by the effects of currency and cost pass-through which reduced sales by 5%.
Sales decreased $91 million, or 15%, in the third quarter and $178 million, or 10%, for the nine-months ended September 30, 2012 versus the respective 2011 periods. Underlying sales grew 1% for the quarter and 2% for the nine-months, primarily due to improved pricing in both periods partially offset by lower volumes in the current quarter versus 2011. Negative currency impacts, primarily the weakening of the Brazilian Real against the U.S. Dollar, reduced sales by 17% in the quarter and 13% for the nine months versus 2011. Higher volumes from new
Segment sales increased $9 million, or 3%, in the third quarter and $26 million, or 3% for the nine-months ended September 30, 2012 versus the respective 2012 periods. Volume growth increased sales by 5% for the third quarter and nine-month periods due to higher on-site sales from new plant start-ups in China. Overall volume growth was mitigated by lower demand from the electronics end-market including semiconductor, flat panel display, and solar customers. Lower merchant pricing, primarily due to the electronics end-market, reduced sales for the quarter and nine-month periods as compared to the prior year. Negative currency impacts, primarily the weakening of the Indian Rupee against the U.S. Dollar, reduced sales by 4% in the quarter and 3% for the nine months versus 2011. By end-market, sales increased to metals and chemicals customers, and decreased to manufacturing and photovoltaic customers for both periods. Cost pass-through increased sales by 3% for the quarter and 2% for the nine-month period and relates to the contractual pass through of precious metals and power costs fluctuations, with minimal impact on operating profit.
Segment sales decreased $6 million, or 4% for the quarter and increased $6 million, or 1%, for the nine months ended September 30, 2012 versus 2011. Underlying sales increased 2% and 4% driven by higher volumes and pricing. The underlying sales growth came from increased aerospace coatings and increased coatings for energy markets, particularly coatings for parts used in the oil and gas markets. Currency translation negatively impacted sales by 6% and 3% for the quarter and nine month periods, due primarily to the weakening of the Euro versus the U.S. Dollar.
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