Praxair Q3 Results Miss Expectations, Says CFO To Retire - Update

(RTTNews) - Industrial gas producer Praxair, Inc. (PX) said third-quarter profit increased from the previous year amid a 9 percent growth in sales. Adjusted earnings and revenues missed expectations. Separately, the company announced the retirement of its finance chief Jim Sawyer.

Net income advanced to $445 million or $1.49 per share from $430 million or $1.43 per share a year before.

The latest results included the impact of a pension settlement charge of $9 million pre-tax or 2 cents per share.

Adjusted net income totaled $1.51 per share, while it was $1.39 per share last year. On average, 20 analysts polled by Thomson Reuters expected earnings per share of $1.52 for the quarter. Analysts' estimates typically exclude one-time items.

Sales rose 9 percent to $3.01 billion from $2.77 billion. Analysts estimated $3.03 billion of sales. Organic sales increased 7% with growth across all geographic segments.

In North America, sales climbed 14 percent to $1.588 billion. Organic sales growth was 7 percent, driven by strong growth to the energy end market, primarily driven by hydrogen project start-ups for refinery customers.

In Europe, sales improved 10 percent to $386 million. Acquisitions of Dominion Technology Gases and Volgograd Oxygen Factory contributed 5 percent growth.

In South America, sales slid 4 percent to $494 million, and underlying sales, which exclude negative currency impact, grew 6 percent amid solid growth in the metals, manufacturing and healthcare end markets.

Looking ahead to the fourth quarter, Praxair expects earnings per share in the range of $1.52 - $1.57, whereas analysts project earnings of $1.57 per share.

The firm said it is cautious about volume growth in its base business in the fourth quarter as it does not expect much growth in industrial production in North America and Europe. Brazil is stabilizing and growth in China and the rest of Asia continues to be solid, it added.

For full year 2013, the company expects earnings per share of $5.80 - $5.85, on sales of about $12 billion, while it currently sees adjusted earnings per share in the range of $5.90 - $5.95. Analysts project earnings of $5.95 per share on $11.98 billion in sales for the year.

Separately, Praxair said its Executive Vice President and Chief Financial Officer Jim Sawyer would retire on December 31. He is retiring after 28 years of service with Praxair and its predecessor company, Union Carbide. Sawyer has served as Praxair's CFO for 13 years.

Meanwhile, Matt White, currently president, Praxair Canada, would succeed Sawyer as senior vice president and CFO, effective January 1, 2014. Sawyer would serve in an advisory capacity to the company until March 1, 2014.

White was appointed president of Praxair Canada in 2011. He joined Praxair in 2004 as finance director of Praxair's largest business unit, North American Industrial Gases.

Sean Durbin, vice president of operations for Praxair's U.S. Industrial Gases group, will succeed White as President, Praxair Canada.

Furthermore, the board declared a quarterly dividend of 60 cents per share, unchanged from the prior quarter. It is payable on December 16 to shareholders of record on December 6.

PX closed at $124.66 on Tuesday.