Praxair’s 3Q earnings jump 16 percent as sales rise

Danbury-based specialty gas maker Praxair Inc. said its third-quarter profit rose 16 percent as sales jumped worldwide.

Meanwhile, Praxair said it expects fourth-quarter earnings below Wall Street expectations, citing slower growth projections amid the tough economic climate.

For the period ended Sept. 30, Praxair earned $355 million, or $1.11 per share, compared with earnings of $305 million, or 94 cents per share, in the year-ago period.

Revenue jumped 20 percent to $2.85 billion from $2.37 billion.

Analysts polled by Thomson Reuters expected, on average, earnings of $1.06 per share on revenue of $2.73 billion.

Sales in North America, Europe, Asia and South America each rose more than 15 percent. Cost of sales rose 24 percent to $1.73 billion and selling, general and administrative expenses rose 16 percent to $341 million.

Praxair’s short-term debt increased 61 percent to $1.27 billion.

At 11 a.m., Praxair shares traded at $59.96, up $2.46, or 4.3 percent.

“We had another very strong quarter despite some effect from the U.S. Gulf Coast hurricanes, and slowing macroeconomic growth in the U.S. and Europe,” Chairman and Chief Executive Officer Steve Angel said in a statement.

However, the company’s outlook for the fourth quarter isn’t as good, largely due to the global financial crisis, Angel said. 

For the October-to-December period, the company expects to earn $1.03 to $1.08 per share, excluding certain one-time items.

Analysts polled by Thomson Reuters expect, on average, earnings of $1.09 per share for the period. Analysts typically exclude one-time items.

For the fiscal year, Praxair expects to earn $4.21 to $4.26 per share, excluding one-time items, on revenue of about $11 billion.

Analysts expect earnings of $4.23 per share on revenue of $11.05 billion for the year. (AP)