Praxair Q2 Sales, Profits Tumble

The company said strong currency headwinds were the primary reason for the sales and profit decreases, which were consistent across all business segments.

Danbury, CT-based industrial gases provider Praxair reported its 2015 second quarter financial earnings on Tuesday.

The company posted total sales of $2.74 billion, a 12 percent year-over-year decrease. Praxair said the drop was primarily due to foreign currency headwinds of 9 percent. Organic sales decreased 1 percent from last year.

Praxair's profit for Q2 was $308 million, a 34 percent decrease from last year's $467 million. Adjusted net income was $420 million. Operating profit in the quarter was $480 million, and adjusted operating profit was $626 million – 1 percent below last year.

"The second quarter continued to reflect broad-based demand in chemicals, refining and less cyclical end-markets such as healthcare and food and beverage, but revealed further weakening in macro-economic driven demand in South America, China and certain end-markets in the U.S, such as manufacturing and energy," said Steve Angel, Praxair chairman and CEO. "As such, we took actions to better align our organization with these trends. When the markets recover, and ultimately they will, we expect to be in a strong position to realize highly accretive growth.”

Business Segments

In North America, second-quarter sales were $1.48 billion, down 1 percent from last year. The company said volume growth to food and beverage and refinery customers was more than offset by weaker metals, upstream energy and manufacturing end-markets.

In Europe, second-quarter sales were $331 million, a 19 percent decrease. Organic sales were down 1 percent.

South America Q2 sales were $388 million, down 24 percent. Organic sales grew 3 percent.

Sales in Asia were $387 million, down 2 percent.

Praxair Surface Technologies had Q2 sales of $150 million, down from last year's $174 million. Organic sales decreased 6 percent.

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