This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Praxair Management Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: PX

Our long-term growth plans remains strong and we're maintaining our capital spending forecast of $2.1 billion to $2.4 billion against the backlog of $2.7 billion of projects under construction with committed customer contracts. As these projects start up over the next 2 to 3 years, the contributions to sales and earnings growth should accelerate. At the same time, we are in negotiation on a record amount of new contracts, mostly on the emerging markets which should extend our growth horizons significantly. The production of cleaner energy is the largest growth driver in our portfolio. Within the next 18 months, we'll start up 3 world-scale steam methane reformers, which will increase our hydrogen production capacity by 35%. Additionally, our backlog of projects in China where we're currently sold out, should increase our sales there by more than 40%. And now, I'll let Kelcey explain in more detail, our first quarter results.

Kelcey E. Hoyt

Thanks, Jim. Now please turn to Slide 3 for our consolidated first quarter results. Praxair's first quarter results reflect solid growth and continuing operating leverage, with sales growth of 5%, operating profit growth of 6% and EPS growth of 7%. Consolidated sales in the first quarter were $2.8 billion, up 5% versus the prior-year quarter. Foreign currency translation negatively impacted sales 2%, as foreign currencies weakened against the U.S. dollar from the prior-year quarter. The most significant impact to sales came from the Brazilian real, Mexican peso and euro. Underlying sales grew 8% excluding currency and the impact of cost pass-through from lower natural gas prices pass through to hydrogen customers. Higher volumes contributed 4% growth and price contributed 2%. Underlying sales grew in all geographic segments with the exception of Europe. Growth was strongest in North America, driven by strong sales to metals, energy and manufacturing markets. Sales growth continued in South America and Asia from new projects and higher volumes from applications for industrial gases. In Europe, sales were higher than the prior year due to the consolidation of our industrial gas business in Scandinavia. Excluding this acquisition and negative currency effects, sales in Europe were below prior year due to the weak economic environment, particularly in southern Europe.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs