Danbury industrial gas supplier Praxair Inc. posted a 70 percent jump in fourth-quarter profit on Wednesday to meet expectations, as cost cuts and a restructuring charge in the year-earlier period boosted results, Reuters reports.
Meanwhile, Praxair raised its quarterly dividend to 45 cents a share from 40 cents. The dividend is payable on March 15 to shareholders of record by March 5, Reuter reported today.
The company said demand in manufacturing, metal fabrication, and nonresidential construction had lagged in North America and Europe, but that business in Asia and South America is showing “strong improvement.”
“The rate of recovery from the recession has been mixed,” Chief Executive Steve Angel said in a statement. “For 2010, we are cautiously optimistic that growth in the U.S. and Europe will continue to improve, but we expect the climb to be slow and deliberate.”
The company posted net income of $340 million, or $1.09 per share, compared with $200 million, or 64 cents per share, a year earlier.
Analysts on average expected earnings of $1.09 per share, according to Thomson Reuters I/B/E/S.
The company laid off about 1,600 employees in the fourth quarter of 2008, which led to a charge for that year-ago period, Reuters said.
Revenue rose 0.2 percent to $2.41 billion. Analysts expected $2.42 billion.
Jefferies & Co. analyst Laurence Alexander kept a “buy” rating on the stock after the results were posted, saying Praxair’s operational leverage to pricing cycles in the U.S., Europe and Brazil should help boost cash flow despite potential volatility .
“This action reflects our confidence in Praxair’s ability to maintain a high quality business throughout the economic cycles,” Angel said.
For the first quarter, the company expects earnings of $1.05 to $1.10 per share, excluding special items. Analysts expect $1.09 per share for that period.
For the full year, the company expects profit of $4.43 to $4.63 per share on sales of about $10 billion. Analysts expect $4.61 for the year. (AP)
