This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Praxair Management Discusses Q1 2012 Results - Earnings Call Transcript

Today's presentation materials are available on our website at in the Investors section. Please read the forward-looking statement disclosure on Page 2 of the slides and note that it applies to all statements made during this teleconference.

In addition, please note that sequential comparisons include an adjustment in the fourth quarter of 2011 and the reconciliation to the U.S. GAAP reported numbers are in the appendix to this presentation and the press release. Jim and I will now review Praxair's first quarter results and outlook. We'll then be available to answer questions.

James S. Sawyer

Thank you, Kelcey, and good morning, everyone. Praxair turned in another solid quarter, with EPS growth of 7% year-on-year despite currency headwinds and weakening economic conditions in several markets. Our North American segment, Canada, the United States, and Mexico, turned in a stellar performance with operating profit growth of 16%, fueled by improving manufacturing conditions and strong operating leverage as volumes rebounded. In Europe, we experienced lower volumes and negative operating leverage particularly due to the financial crisis affecting Spain and Italy. In South America, operating profit was negatively impacted as currency devaluation, a recession in Brazil and production distribution dislocations in our operations all occurred at the same time. In Asia, a strong performance in industrial gases with much of our production capacity sold-out was partially offset by bond [ph] volumes and prices of product sold to the electronics and solar markets.

Fully diluted earnings per share were $1.38. Earnings included about $10 million of other income attributable to the net effect of gains on asset sales and the recognition of income from a legal settlement, partially offset by some restructuring and severance costs. Excluding the onetime items, the underlying run rate of EPS is closer to $1.36.

For the second quarter, we're expecting a continuation of the same business trends and are issuing earnings guidance of $1.40 to $1.45. For the full year, our earnings guidance is $5.75 to $5.90, increasing the bottom end of the range by $0.05. We do expect a stronger second half of 2012 as the Brazil economy gets back on track to a 4% annualized GDP growth rate and as the electronics sector picks up in the fall.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,813.74 +23.55 0.14%
S&P 500 1,985.97 +6.05 0.31%
NASDAQ 4,759.94 +11.5790 0.24%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs