Praxair Profit Falls on Declining Volumes

Danbury, Conn. -- Praxair (PX Quote) said Wednesday that its fourth-quarter profit slipped 37%, weighed down by a hefty cost cutting-related charge and declining volumes in a weakened economy.

Last month the company said its cost-cutting measures would include the elimination of 1,600 jobs and the closing of underperforming and noncore product lines.

The industrial gas maker reported net income fell to $200 million, or 64 cents per share, compared with $316 million, or 98 cents per share, in the previous year.

Excluding a 37 cents-per-share charge related to the cost-cutting efforts, adjusted profit was $314 million, or $1.01 per share.

For the period ended Dec. 31, sales declined 5% to $2.4 billion from $2.52 billion a year earlier.

Analysts surveyed by Thomson Reuters expected profit of 96 cents per share on revenue of $2.43 billion. Analysts' estimates typically exclude one-time items.

"Volumes dropped dramatically in November and December as our customers in the electronics, chemicals and metals industries cut production in the face of falling commodity prices and weakening demand," Chairman and Chief Executive Steve Angel said in a statement.

Full-year earnings increased 3% to $1.21 billion, or $3.80 per share, compared with $1.18 billion, or $3.62 per share, in the prior year.

Adjusted net income was $4.20 per share, which excludes the fourth-quarter charge and a 3 cents-per-share charge taken in the first quarter related to a pension settlement.

Annual revenue grew 15% to $10.8 billion from $9.4 billion.

The company also said it expects first-quarter earnings to come in range of analysts' estimates.