Business Intelligence Financial – Praxair – Q2 2015


gasworld Business Intelligence provides you with the latest analysis of Praxair’s Q2 2015 earnings reports.

  • Q2 reported corporate sales down -12% YoY and -1% sequentially at $2.74bn.
  • Q2 operating profit down -10% YoY although up +0.5% sequentially.
  • Sales down -1% YoY excluding currency and energy cost pass through. Operating income down -1% YoY excluding currency.

  • Operating margin at 22.9% in Q2 was 50 bp up on previous year – highest margin in recent years, helped by negative impact on top line of energy cost pass-through.
  • Still highest operating and EBITDA margins in industry.
  • EBITDA margin up to over 33% of sales.
  • ROE at over 30% – up over 200bp YoY.
  • Cost actions taken – $146m charge in Q2, including severance of 5% of global workforce and consolidation/exit from a number of businesses. Expected to provide $75m of savings in 2016 including $30m benefit in South America, and $10m in Asia.
  • 2015 expectations – with economy slowing further expecting EPS growth slowed further to +3-6% excluding currency – reduction mainly due to South America and North America manufacturing.
  • Brazil expected to remain flat at low point through 2015/6.

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