The 2020 Mid-Year Economic Update_long

Praxair Sales Down 9% in 1Q

North America sales down 5% year-over-year.

Praxair Inc. (NYSE: PX), Danbury, CT, reported sales for the first quarter of $2.8 billion, a 9 percent decrease year-over-year, due to the impact of negative currency translation of 8 percent and lower cost pass-through of 2 percent. Profit decreased 7.1 percent to $416 million.

Organic sales growth of 1 percent was driven by higher price.

In North America, first-quarter sales were $1.5 billion, down 5 percent from the prior-year quarter. Organic sales growth of 1 percent was driven primarily by higher sales of merchant and packaged gases to food and beverage, healthcare and manufacturing end-markets. Acquisitions of U.S. packaged gas distributors contributed 1 percent growth.

In Europe, first-quarter sales were $326 million, 18 percent below the prior-year quarter. Excluding currency and net divestitures, organic sales were 1 percent above the prior year due primarily to price attainment. 

In South America, first-quarter sales decreased 18 percent year-over-year to $401 million. Organic sales, excluding negative currency translation and cost pass-through, grew 1 percent primarily from higher price and growth to food and beverage and healthcare end-markets. 

Sales in Asia were $371 million in the quarter, 5.4 percent below the prior year.

Praxair Surface Technologies had first-quarter sales of $160 million, a decrease of 5.3 percent compared to the prior-year quarter. Excluding negative currency translation impact, organic sales grew 2 percent due to favorable overall pricing and volume growth primarily to the aerospace end-market.

"Growth headwinds persist from the strength of the U.S. dollar and the impact of lower commodity prices on our customer base," said CEO Steve Angel. "However, our less cyclical end-markets continue to perform well, which speaks to our strength in diversity of end-markets. We anticipate these trends will continue throughout 2015."

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.