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Praxair 1Q Profit Slips On Falling Demand

The Associated Press

DANBURY, Conn. (AP) — Industrial gas maker Praxair Inc. said Wednesday its first-quarter earnings slipped 6 percent as demand fell across its global markets and the company narrowed its full-year earnings outlook.

The company said it earned $290 million, or 93 cents per share, for the quarter ended March 31. It earned $307 million, or 96 cents per share, a year earlier.

Sales fell 20 percent to $2.12 billion from $2.66 billion, hurt in part by the stronger dollar.

Analysts surveyed by Thomson Reuters expected a profit 92 cents per share on $2.38 billion in sales, on average.

Chief Executive Steve Angel said customer demand appears to have stabilized, but at lower levels compared with last year. He said overall volumes fell 12 percent, offsetting higher pricing.

"As we anticipated, the low level of customer demand which we experienced in November and December continued right through the first quarter," he said in a statement. "We have not yet seen meaningful signs of recovery and we are therefore cautious regarding our outlook for the remainder of the year."

Shares of Praxair closed Tuesday at $71.47. The stock has traded between $47.70 and $99.74 in the past 52 weeks.