Praxair Inc. (NYSE: PX), Danbury, CT, reported sales for the first quarter of $2.5 billion, a 9 percent decrease year-over-year, due to impacts of negative currency translation and lower cost pass-through, which reduced sales by 7 percent and 1 percent, respectively. Organic sales were 1 percent below the prior-year quarter.
Profit for the quarter decreased 14.4 percent to $356 million.
In North America, first-quarter sales were $1.4 billion, down 9.7 percent from the prior-year quarter, and down 4 percent excluding lower cost-pass through, negative currency translation and net divestitures. Organic sales growth from higher pricing and food and beverage end-markets was more than offset by weaker volumes in energy, metals and manufacturing end-markets.
In Europe, first-quarter sales were $320 million, 1.8 percent below the prior-year quarter. Excluding currency, organic sales grew 2 percent from the prior year due to higher volumes, including new project start-ups.
In South America, first-quarter sales decreased 22 percent year-over-year to $311 million. Excluding negative currency translation and cost pass-through, sales grew 2 percent from acquisitions, higher price, and growth to food and beverage and healthcare end-markets, partially offset by lower volumes to the manufacturing end-market.
Sales in Asia were $376 million in the quarter, 1.3 percent above the prior year. Excluding currency and cost pass-through sales increased 6 percent.
Praxair Surface Technologies had first-quarter sales of $149 million, a decrease of 6.9 percent compared to the prior-year quarter. Excluding negative currency translation and cost pass-through, sales decreased 4 percent. Favorable price was more than offset by lower volumes.
“While North America continues to face year-over-year volume headwinds primarily in the energy, metals and manufacturing end-markets, we grew sales to the healthcare, food and beverage end-markets globally, achieved higher pricing in many businesses, and grew volumes in Europe and Asia supplemented by project start-ups," said CEO Steve Angel. "In addition, we closed six packaged gas acquisitions located in North America and Europe."
