Praxair Mexico announced the completion of Altamira Complex situated on the northeast coast of Mexico. The company started a new packaged gas facility at this industrial corridor, which is the company’s concluding part of investments to satisfy a growing demand.
 
Besides the gas facility, the Altamira Complex also has a state-of-the-art, on-site hydrogen plant and an advanced nitrogen plant. The hydrogen plant supplies gases to POSCO, an important steel company, while the nitrogen plant caters to the needs of several customers through a 35-kilometer pipeline.
 
Praxair Inc. (PX) is a premier industrial gas supplier in the Americas and internationally. The company’s Mexican unit, Praxair Mexico is a leading industrial gas provider in the region operating through at least 300 production, distribution and sales sites. Praxair has more than 2,500 employees and 35,000 customers in Mexico.
 
The company’s intense focus on expanding its reach within its operating regions while adding new customers has accelerated its profit growth, which should continue in the future. Furthermore, Praxair currently stands well positioned to benefit from the favorable economic environment, given its broad end-market exposure to food and beverage, steel, glass and chemicals.
 
However, Praxair’s large international presence increases its vulnerability relating to fluctuations in foreign currencies and geopolitical uncertainties. Besides, volatility in energy prices further enhances its risk of energy supply in adverse economic conditions.
 
The company expects diluted earnings per share to be in the range of $1.15 to $1.20 for the third quarter of 2010 and between $4.60 and $4.70 for full-year 2010. Total revenue for full-year 2010 is estimated to be approximately $10.0 billion.
 
Praxair’s chief rivals in the business are Air Products and Chemicals Inc. (APD); Airgas Inc. (ARG); The Linde Group (LNAGF.PK); Chromalloy Gas Turbine Corporation and Bodycote (BOY.L). We are currently maintaining a Neutral recommendation on Praxair.
 
AIR PRODS & CHE (APD): Free Stock Analysis Report
 
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PRAXAIR INC (PX): Free Stock Analysis Report
 
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