(RTTNews) - Industrial gases producer Praxair, Inc. (PX: News ) reported Wednesday a decline in third-quarter profit, reflecting a 20% decrease in sales on lower volumes and unfavorable foreign currency. On an adjusted basis, earnings per share came in above analysts' estimate by two pennies. The company also provided earnings forecasts for both the fourth quarter and for the full year.

For the third quarter, net income attributable to Praxair dropped to $325 million or $1.04 per share from $355 million or $1.11 per share in the previous year.

The results of the latest quarter included a net post-tax benefit of $7 million, or $0.02 per share, resulting from a $306 million pre-tax charge and $313 million of income tax benefits, pertaining chiefly to a Brazilian government tax amnesty program.

Excluding items, earnings were $318 million or $1.02 a share. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $1.00 per share for the third quarter. Analysts' estimates typically exclude special items.

Sales for the quarter decreased 20% to $2.29 billion from $2.85 billion, reflecting lower cost pass-through, decline in volumes and foreign exchange rate variations. Twelve analysts were expecting revenue of $2.30 billion for the third quarter.

Excluding the negative effects of foreign currency and cost pass-through, underlying sales dropped 9% because of 11% drop in volumes, partially offset by a 2% increase in overall pricing.
Region-wise, sales in North America for the quarter slid 25% year-over-year to $1.16 billion. Excluding the negative effect of currency and cost pass-through, underlying sales declined 12%. In Europe, sales shrank 16% to $323 million. Excluding translation losses, sales were 8% below the previous year, due to lower volumes in manufacturing and metals markets.

In South America, sales for the three-month period came down 17% to $436 million. Excluding currency effects, sales dipped 6% from the prior-year quarter. Sales in Asia declined 3% to $232 million from the corresponding quarter of fiscal 2008. Excluding currency translation effects, underlying sales advanced 3% year-over-year because of growth in on-site and liquid volumes in China, India, and Korea.

Praxair Surface Technologies recorded sales of $135 million, down from $145 million in the year-ago third quarter. Excluding currency effects and the sales contribution from the acquired Sermatech International Holdings Corp., sales declined 17% from the past year. The company noted that lower coatings volumes for industrial gas turbines and for general manufacturing markets in the U.S. and Europe more than offset the increase in coating volumes for jet engines and natural gas turbines.

To receive FREE breaking news email alerts for Praxair Inc and others in your portfolio

 1   2   Next Page