Praxair Misses on Q3 Earnings and Revenues, Cuts Outlook u s anti money laundering laws

Praxair, inc – earnings surprise | findthebest


Praxair generated revenues of $3,144 million in the third quarter, increasing 4.3% year over year. The year-over-year improvement can be attributed to 5% organic revenue growth driven by project start-ups in the america and asia, as well as favorable pricing. Currency translation had a negative 1% impact.

However, the top line lagged the zacks consensus estimate of $3,162 million.

On a segmental basis, revenues generated in north america increased 3.2% year over year to $1,639 million, while that from europe inched down 0.3% to $385 million. In asia, revenues climbed 1.6% to $426 million. Surface technologies revenues were $171 million, up 6.9% year over year. Revenues from south america increased 5.9% to $523 million.


Praxair’s cost of sales in the quarter increased 4.9% year over year, representing 56.6% of total revenues versus 56.3% in the year-ago quarter.U s anti money laundering laws selling, general and administrative expenses were down 2.7% year over year to $327 million. Research and development expenses amounted to $25 million, slightly above $24 million in the year-ago quarter.

Adjusted operating profit came in at $711 million, up 4.7% year over year, while adjusted margin grew 10 basis points to 22.6%.

Balance sheet

Exiting third-quarter 2014, praxair had cash and cash equivalents of $168 million, down 2.9% from $173 million in the previous quarter. Long-term debt slipped 5.6% to $8,089 million from $8,565 million in the preceding quarter.

Cash flow

In the third quarter, praxair generated net cash of $713 million from its operating activities, decreasing 21.1% year over year. Capital spent on purchase of property, plant and equipment was $430 million, down 16.7% year over year.

Share repurchases/dividends

Following a policy of rewarding shareholders handsomely, praxair paid dividends of $189 million in the third quarter, while repurchasing shares worth $116 million.U s anti money laundering laws

Concurrent with the earnings release, praxair announced that its board of directors has approved a quarterly dividend payment of 65 cents per share for fourth-quarter 2014. The dividend will be paid on dec 15, 2014 to shareholders of record as on dec 5.

Outlook: for fourth-quarter 2014, praxair anticipates earnings per share to be in the $1.53−$1.60 range.

For 2014, praxair has revised down its earnings guidance to $6.23−$6.30 range from the prior forecast of $6.30−$6.45. The new guidance reflects a year-over-year increase of 5−6%. Also, it includes a 3% negative impact from foreign currency translation.

Sales are anticipated within $12.3−$12.4 billion as against $12.4−$12.7 billion expected earlier. The revised prediction includes 5−6% organic revenue growth, a 3% negative impact from foreign currency translation and a 1% gain from acquisitions.

Capital spending is expected to be roughly $1.7 billion, down from $1.8 billion estimated earlier, and the effective tax rate is projected at 28%.U s anti money laundering laws

With a market capitalization of $36.7 billion, praxair currently carries a zacks rank #4 (sell). Some better-ranked stocks in the industry include globe specialty metals, inc. ( GSM), minerals technologies inc. ( MTX) and celanese corporation ( CE). While both globe specialty metals and minerals technologies sport a zacks rank #1 (strong buy), celanese corporation carries a zacks rank #2 (buy).

Read the full research report on PX

Read the full research report on CE

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Read the full research report on GSM

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