Company: Praxair (PX US)
QMG product: US24.11 – Manufacturers of Industrial
Event: Q1 FY15 Results
o Sales: $2.8bn (-9% yoy) vs QMG: +11.92%
o Operating margins: 22.6% vs QMG: 11.94%
o EBITDA: 33.0%
o Results challenged by negative impact thanks to foreign exchange effects as US dollar strengthened against most foreign currencies.
Whilst the most recent earnings update is not in line with QMG’s sector observations on US Manufacturers of Industrial Gases we highlight that positive Margin growth is reflected.
Given the recent agreements to expand the US and Chinese networks and the fact that 52% of revenue comes out of North America, we expect actual results to be more positive moving into full year earnings. Investor view is positive as well since the share price is up 1.55% the day after earnings announcement.
US24.11 – Price, Cost, Volume
US24.11 – Margins vs QMG US Manufacturers benchmark