Recently, Praxair, Inc. (PX) started its new air separation plant in San Jose, Costa Rica. In addition to meeting increasing demand for oxygen, nitrogen and argon from industrial and medical customers in Costa Rica, the new facility positions Praxair to supply distributors in Panama and the Caribbean market.
 
The Praxair unit in China, Praxair China, plans to build a nitrogen plant and integrate its patented direct-injection technology at Marcegalia’s new steel-tube mill in Yangzhou, Jiangsu Province, China.
 
The mill will produce 350,000 tons of stainless, carbon precision and cold drawn steel tubes per year for use in the construction, appliance, engineering-component and energy markets. Phase 1 of the project is scheduled to start in June 2010 and Phase 2 in 2011.
 
Praxair’s intense focus on continuously expanding its reach in its operating regions and adding new customers to its existing spheres of business have accelerated its profit growth, which should continue in future. Furthermore, Praxair is likely to benefit from the general favorable economic environment, given its broad end-market exposure to food and beverage, steel, glass, and chemicals.
 
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide. Low natural gas prices have hurt the company’s top-and bottom-line results in the third quarter of 2009, which is likely to continue for the next couple of quarters.
 
For the fourth quarter, Praxair expects earnings per share in the range of $1.05 to $1.10. For the full year, Praxair expects sales to be about $9 billion and adjusted earnings per share in the range of $3.96 to $4.01. Capital expenditures for the full year are expected to be $1.4 billion.
Read the full analyst report on “PX”
Zacks Investment Research