Industrial gases supplier Praxair Inc. has signed a marketing agreement with Nikolaus Sorg GmbH & Co. KG, a subsidiary of The Sorg Group of Lohr am Main, Germany.
Praxair and Sorg will promote high-e…
Industrial gases supplier Praxair Inc. has signed a marketing agreement with Nikolaus Sorg GmbH & Co. KG, a subsidiary of The Sorg Group of Lohr am Main, Germany. Praxair and Sorg will promote high-efficiency technology for glass melting in the United States and Canada. Their joint offerings include a Sorg furnace design, as well as Praxair“s advanced combustion systems and heat recovery applications. The technologies and services will deliver enhanced energy efficiency and lower emissions to the glass-melting industry, said Scott Sanderude, vice president of marketing and business development for Praxair“s North American Industrial Gases. “Sorg“s experience and reputation as a state-of-the-art leader in glass melting complement Praxair“s technologies and on-site industrial gas supply capabilities in the North American glass industry”, he said. Praxair on 29 April 2009 reported first- quarter net income of USD 290 million, compared with USD 307 million for the same period 2008. Much of the fall can be attributed to a downturn in customer demand, which started in November 2008, chairman and CEO Steve Angel told investors. He has expressed optimism for the remainder of 2009. “Our productivity programs have reduced costs significantly to offset the impact of lower volumes. When the economy does recover, this will give us substantial operating leverage on volume growth”, he said. “We signed several new contracts this quarter for energy projects in the US and Europe”. The company is showing signs of life in the depressed economy, according to Laurence Alexander, an analyst for Jefferies & Co., who has a “buy” on the stock. “Praxair“s leverage to pricing cycles in the U.S., Europe and Brazil, coupled with ongoing productivity initiatives, should support free cash flow in a volatile environment”, Mr. Alexander said in a recent report. “Praxair still has levers to contribute to structural improvements in return on capital and return on equity”.