Praxair reports EPS in-line, misses on revs; guides Q2 EPS below consensus; raises FY14 EPS slightly, raises low end of FY14 rev
Reports Q1 (Mar) earnings of $1.51 per share, in-line with the Capital IQ Consensus Estimate consensus of $1.51; revenues rose 4.8% year/year to $3.03 bln vs the $3.06 bln consensus.
Co issues in-line guidance for FY14, narrows EPS to $6.30-6.50 from $6.25-6.55 vs. $6.46 Capital IQ Consensus Estimate; sees FY14 revs of $12.4-12.8 bln (from $12.3-12.8 bln) vs. $12.62 bln Capital IQ Consensus Estimate.
"Praxair delivered solid results in the first quarter with sales growth of 9% and operating profit growth of 12%, excluding the impact of currency headwinds. Organic growth of 6% reflected contributions from new projects in North America and Asia, as well as modest volume growth in our South America, Europe and Surface Technologies operating segments. Praxair's relentless focus on achieving productivity benefits and higher price to offset cost inflation produced strong operating leverage and an operating margin of 22.3%. We expect base volumes for the remainder of 2014 to continue to reflect modest growth in-line with the current macro-economic environment. Through continued operational excellence, project execution and financial discipline, we expect to continue to deliver increasing cash flow and earnings per share. We expect contribution from new projects and acquisitions to increase return on capital in the second half of the year."
- Organic sales grew 6% driven by higher on-site volumes from new project start-ups primarily in North America and Asia. By end-market, sales growth was strongest for energy, chemicals, and food and beverage customers, as compared to the prior-year quarter. Acquisitions contributed 2% growth in the quarter.
Co issues in-line guidance for FY14, narrows EPS to $6.30-6.50 from $6.25-6.55 vs. $6.46 Capital IQ Consensus Estimate; sees FY14 revs of $12.4-12.8 bln (from $12.3-12.8 bln) vs. $12.62 bln Capital IQ Consensus Estimate.
"Praxair delivered solid results in the first quarter with sales growth of 9% and operating profit growth of 12%, excluding the impact of currency headwinds. Organic growth of 6% reflected contributions from new projects in North America and Asia, as well as modest volume growth in our South America, Europe and Surface Technologies operating segments. Praxair's relentless focus on achieving productivity benefits and higher price to offset cost inflation produced strong operating leverage and an operating margin of 22.3%. We expect base volumes for the remainder of 2014 to continue to reflect modest growth in-line with the current macro-economic environment. Through continued operational excellence, project execution and financial discipline, we expect to continue to deliver increasing cash flow and earnings per share. We expect contribution from new projects and acquisitions to increase return on capital in the second half of the year."