Praxair 3Q earnings fall 8 percent as sales slump

Praxair 3rd-qtr earnings fall 8 percent as steep sales decline is balanced by cost cuts

• On 11:27 am EDT, Wednesday October 28, 2009

DANBURY, Conn. (AP) -- Praxair Inc. said Wednesday its third-quarter earnings fell 8 percent, on a steep decline in sales due to weak demand across the industries it serves including aerospace, electronics, health care and manufacturing.

But the industrial gas producer said its sales slide was countered by initiatives to cut costs across its business.

Praxair earned $325 million, or $1.04 per share, compared with $355 million, or $1.11 per share, a year ago.

Excluding some one-time gains and losses, the company earned $1.02 per share.

Revenue sank 20 percent to $2.29 billion, from $2.85 billion in the 2008 third quarter.

Analysts polled by Thomson Reuters were expecting a profit of $1 on $2.3 billion in sales.

Praxair said that its business stabilized during the quarter, with production ramping up across the globe. The strongest pick up, it said, was in Asia and South America, where government stimulus programs have increased demand.

Overall demand in North America and Europe, though, "remains relatively weak and has yet to show meaningful signs of recovery."

For the fourth quarter of 2009, Praxair expects earnings per share in the range of $1.05 to $1.10. Analysts expect $1.07.

Shares fell $2.20, or 2.7 percent, to $79.33 in midday trading.