Praxair Reports First-Quarter 2016 Results
-
Sales of $2.5 billion; EPS of $1.24; adjusted EPS of $1.28
-
Operating cash flow 8% above prior-year quarter
-
EBITDA and operating margins of 33.3% and 22.1%, respectively
-
Completed six packaged gas acquisitions, primarily North America;
annualized sales of approximately $50 million
-
Return on capital 12.4%; return on equity 34.6%
-
Second-quarter 2016 EPS guidance of $1.32 to $1.39; adjusted
full-year $5.35 to $5.70
Praxair, Inc. (NYSE: PX) reported first-quarter net income and diluted
earnings per share of $356 million and $1.24, respectively. These
results include the impact of a $16 million charge to interest expense
($10 million after-tax) or 4 cents of diluted earnings per share,
related to a bond redemption prior to maturity. Excluding this charge,
adjusted net income and diluted earnings per share were $366 million and
$1.28, respectively.
Praxair’s sales in the first quarter were $2,509 million, 9% below the
prior-year quarter, primarily due to the impacts of negative currency
translation and lower cost pass-through, which reduced sales by 7% and
1%, respectively. Organic sales were 1% below the prior-year quarter.
Growth from higher pricing, new project start-ups, and healthcare and
food and beverage end-markets, was more than offset by lower volumes to
energy, metals and manufacturing end-markets, primarily in North America.
Operating profit in the first quarter was $554 million, 11% below the
prior-year quarter. Excluding currency effects, operating profit was 4%
below the prior-year period. The operating profit margin was 22.1% and
the EBITDA margin grew to 33.3%.
First-quarter cash flow from operations was $547 million, 8% above the
prior-year quarter. Capital expenditures were $323 million and the
company invested $63 million in acquisitions for several packaged gas
businesses, primarily in North America. The company paid $214 million of
dividends. During the quarter, the company issued €550 million of 1.20%
Euro-denominated notes due 2024 and $275 million of 3.20% notes due
2026. In addition, the company repaid $400 million of 0.75% notes that
became due and redeemed $325 million of 5.20% notes due in 2017.
After-tax return on capital and return on equity for the quarter were
12.4% and 34.6%, respectively.
Commenting on the financial results and business outlook, Chairman and
Chief Executive Officer Steve Angel said, “Praxair’s strategy of
optimizing the base business, growing resilient end-markets, executing
the project backlog and capitalizing on acquisition and project
opportunities reflected positively in our first-quarter results and
continues to drive long-term value creation.
“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. In addition, we closed six
packaged gas acquisitions located in North America and Europe.
“Praxair employees again delivered high-quality results with an
operating margin of 22% and growth in operating cash flow of 8%, against
a difficult macro-economic environment. Consistent high-quality results
and strong cash flow affords us the long-term ability to invest in
high-quality projects and acquisitions that align with our strategic
objectives and meet our investment criteria as well as return value to
our shareholders in the form of higher dividends and share repurchases.”
For the second quarter of 2016, Praxair expects diluted earnings per
share in the range of $1.32 to $1.39.
For full-year 2016, Praxair expects adjusted diluted earnings per share
to be in the range of $5.35 to $5.70, -2% to +4% ex-currency from 2015.
Full-year capital expenditures are expected to be approximately $1.5
billion and the effective tax rate is forecasted to remain at
approximately 28%.
Following is additional detail on first-quarter 2016 results by segment.
In North America, first-quarter sales were $1,353 million, down 4% from
the prior-year quarter 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.
Operating profit of $349 million was down 4% versus the prior-year
quarter, excluding currency translation and net divestitures, due
primarily to lower volumes partially offset by price and productivity.
In Europe, first-quarter sales were $320 million, 2% below the
prior-year quarter. Excluding currency, organic sales grew 2% from the
prior year due to higher volumes, including new project start-ups.
Operating profit of $62 million grew 3% from the prior-year, excluding
currency translation, from operating leverage on volume growth.
In South America, first-quarter sales were $311 million, 22% below the
prior-year quarter. Excluding negative currency translation and cost
pass-through, sales grew 2% from acquisitions, higher price, and growth
to food and beverage and healthcare end-markets, partially offset by
lower volumes to the manufacturing end-market. Operating profit was $55
million.
Sales in Asia were $376 million in the quarter, 6% above the prior year
excluding currency and cost pass-through. Volume growth included new
plant start-ups in China and India. Operating profit was $63 million.
Praxair Surface Technologies had first-quarter sales of $149 million as
compared to $160 million in the prior-year quarter. Excluding negative
currency translation and cost pass-through, sales were 4% below the
prior-year period. Favorable price was more than offset by lower
volumes. Sales were primarily lower to the energy and manufacturing
end-markets. Operating profit was $25 million.
Praxair, Inc., a Fortune 250 company with 2015 sales of $11 billion, is
the largest industrial gases company in North and South America and one
of the largest worldwide. The company produces, sells and distributes
atmospheric, process and specialty gases, and high-performance surface
coatings. Praxair products, services and technologies are making our
planet more productive by bringing efficiency and environmental benefits
to a wide variety of industries, including aerospace, chemicals, food
and beverage, electronics, energy, healthcare, manufacturing, primary
metals and many others. More information about Praxair, Inc. is
available at www.praxair.com.
Adjusted amounts are non-GAAP measures. First-quarter 2016 results are
adjusted to exclude the impact of a bond redemption charge.
Additionally, measures such as EBITDA, free cash flow, after-tax return
on capital, return on equity and debt-to-capital are also non-GAAP
measures. See the attachments for a summary of non-GAAP Reconciliations
and calculations of non-GAAP measures.
Attachments: Summary Non-GAAP Reconciliations, Statements of
Income, Balance Sheets, Statements of Cash Flows, Segment Information,
Quarterly Financial Summary and Appendix: Non-GAAP Measures.
A teleconference about Praxair’s first-quarter results is being held
this morning, April 29, at 11:00am Eastern Daylight Time. The number is
(631) 485-4849 – Conference ID: 85141182. The call is also
available as a webcast live and on-demand at www.praxair.com/investors.
Materials to be used in the teleconference are also available on the
website.
This document contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements are based on management’s reasonable expectations and
assumptions as of the date the statements are made but involve risks and
uncertainties. These risks and uncertainties include, without
limitation: the performance of stock markets generally; developments in
worldwide and national economies and other international events and
circumstances; changes in foreign currencies and in interest rates; the
cost and availability of electric power, natural gas and other raw
materials; the ability to achieve price increases to offset cost
increases; catastrophic events including natural disasters, epidemics
and acts of war and terrorism; the ability to attract, hire, and retain
qualified personnel; the impact of changes in financial accounting
standards; the impact of changes in pension plan liabilities; the impact
of tax, environmental, healthcare and other legislation and government
regulation in jurisdictions in which the company operates; the cost and
outcomes of investigations, litigation and regulatory proceedings;
continued timely development and market acceptance of new products and
applications; the impact of competitive products and pricing; future
financial and operating performance of major customers and industries
served; the impact of information technology system failures, network
disruptions and breaches in data security; and the effectiveness and
speed of integrating new acquisitions into the business. These risks and
uncertainties may cause actual future results or circumstances to differ
materially from the projections or estimates contained in the
forward-looking statements. Additionally, financial projections or
estimates exclude the impact of special items which the company believes
are not indicative of ongoing business performance. The company assumes
no obligation to update or provide revisions to any forward-looking
statement in response to changing circumstances. The above listed risks
and uncertainties are further described in Item 1A (Risk Factors) in the
company’s Form 10-K and 10-Q reports filed with the SEC which should be
reviewed carefully. Please consider the company’s forward-looking
statements in light of those risks.
|
PRAXAIR, INC. AND SUBSIDIARIES
|
SUMMARY NON-GAAP RECONCILIATIONS
|
(UNAUDITED)
|
|
The following adjusted amounts are non-GAAP measures and are
intended to supplement investors' understanding of the company's
financial statements by providing measures which investors,
financial analysts and management use to help evaluate the company's
operating performance. Items which the company does not believe to
be indicative of on-going business trends are excluded from these
calculations so that investors can better evaluate and analyze
historical and future business trends on a consistent basis.
Definitions of these non-GAAP measures may not be comparable to
similar definitions used by other companies and are not a substitute
for similar GAAP measures. See the Non-GAAP reconciliations starting
on page 10 for additional details relating to the Non-GAAP
adjustments.
|
|
(Millions of dollars, except per share amounts)
|
|
|
|
|
|
|
|
Sales
|
|
|
Operating Profit
|
|
|
Net Income - Praxair, Inc.
|
|
|
Diluted EPS
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Quarter Ended March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Amounts
|
|
|
|
|
|
$
|
2,509
|
|
|
$
|
2,757
|
|
|
$
|
554
|
|
|
$
|
623
|
|
|
$
|
356
|
|
|
$
|
416
|
|
|
|
|
$
|
1.24
|
|
|
$
|
1.43
|
Bond redemption (a)
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10
|
|
|
|
-
|
|
|
|
|
|
0.04
|
|
|
|
-
|
Total adjustments
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10
|
|
|
|
-
|
|
|
|
|
|
0.04
|
|
|
|
-
|
Adjusted amounts
|
|
|
|
|
|
$
|
2,509
|
|
|
$
|
2,757
|
|
|
$
|
554
|
|
|
$
|
623
|
|
|
$
|
366
|
|
|
$
|
416
|
|
|
|
|
$
|
1.28
|
|
|
$
|
1.43
|
|
(a) $16 million charge to interest expense ($10 million after-tax or
$0.04 per diluted share) in the 2016 first quarter related to a bond
redemption.
|
PRAXAIR, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF INCOME
|
(Millions of dollars, except per share data)
|
(UNAUDITED)
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
|
|
|
$
|
2,509
|
|
|
|
|
$
|
2,757
|
|
Cost of sales
|
|
|
|
|
|
1,381
|
|
|
|
|
|
1,530
|
|
Selling, general and administrative
|
|
|
|
|
|
274
|
|
|
|
|
|
299
|
|
Depreciation and amortization
|
|
|
|
|
|
272
|
|
|
|
|
|
277
|
|
Research and development
|
|
|
|
|
|
23
|
|
|
|
|
|
24
|
|
Other income (expense) - net
|
|
|
|
|
|
(5
|
)
|
|
|
|
|
(4
|
)
|
OPERATING PROFIT
|
|
|
|
|
|
554
|
|
|
|
|
|
623
|
|
Interest expense - net
|
|
|
|
|
|
65
|
|
|
|
|
|
44
|
|
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS
|
|
|
|
|
|
489
|
|
|
|
|
|
579
|
|
Income taxes
|
|
|
|
|
|
133
|
|
|
|
|
|
162
|
|
INCOME BEFORE EQUITY INVESTMENTS
|
|
|
|
|
|
356
|
|
|
|
|
|
417
|
|
Income from equity investments
|
|
|
|
|
|
10
|
|
|
|
|
|
11
|
|
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)
|
|
|
|
|
|
366
|
|
|
|
|
|
428
|
|
Less: noncontrolling interests
|
|
|
|
|
|
(10
|
)
|
|
|
|
|
(12
|
)
|
NET INCOME - PRAXAIR, INC.
|
|
|
|
|
$
|
356
|
|
|
|
|
$
|
416
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
$
|
1.25
|
|
|
|
|
$
|
1.44
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
|
$
|
1.24
|
|
|
|
|
$
|
1.43
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
|
|
|
$
|
0.75
|
|
|
|
|
$
|
0.715
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding (000's)
|
|
|
|
|
|
285,429
|
|
|
|
|
|
289,143
|
|
Diluted shares outstanding (000's)
|
|
|
|
|
|
286,665
|
|
|
|
|
|
291,652
|
|
|
|
|
|
|
|
|
|
|
|
Note: See page 4 for a reconciliation to 2016 adjusted amounts
which are non-GAAP.
|
|
|
PRAXAIR, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Millions of dollars)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
$
|
221
|
|
|
|
$
|
147
|
|
Accounts receivable - net
|
|
|
|
|
|
|
1,685
|
|
|
|
|
1,601
|
|
Inventories
|
|
|
|
|
|
|
553
|
|
|
|
|
531
|
|
Prepaid and other current assets
|
|
|
|
|
|
|
411
|
|
|
|
|
347
|
|
TOTAL CURRENT ASSETS
|
|
|
|
|
|
|
2,870
|
|
|
|
|
2,626
|
|
Property, plant and equipment - net
|
|
|
|
|
|
|
11,314
|
|
|
|
|
10,998
|
|
Goodwill
|
|
|
|
|
|
|
3,071
|
|
|
|
|
2,986
|
|
Other intangibles - net
|
|
|
|
|
|
|
576
|
|
|
|
|
568
|
|
Other long-term assets
|
|
|
|
|
|
|
1,194
|
|
|
|
|
1,141
|
|
TOTAL ASSETS
|
|
|
|
|
|
$
|
19,025
|
|
|
|
$
|
18,319
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
|
$
|
796
|
|
|
|
$
|
791
|
|
Short-term debt
|
|
|
|
|
|
|
174
|
|
|
|
|
250
|
|
Current portion of long-term debt
|
|
|
|
|
|
|
8
|
|
|
|
|
6
|
|
Other current liabilities
|
|
|
|
|
|
|
821
|
|
|
|
|
846
|
|
TOTAL CURRENT LIABILITIES
|
|
|
|
|
|
|
1,799
|
|
|
|
|
1,893
|
|
Long-term debt
|
|
|
|
|
|
|
9,222
|
|
|
|
|
8,975
|
|
Other long-term liabilities
|
|
|
|
|
|
|
2,580
|
|
|
|
|
2,545
|
|
TOTAL LIABILITIES
|
|
|
|
|
|
|
13,601
|
|
|
|
|
13,413
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE NONCONTROLLING INTERESTS
|
|
|
|
|
|
|
119
|
|
|
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
PRAXAIR, INC. SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
|
4
|
|
|
|
|
4
|
|
Additional paid-in capital
|
|
|
|
|
|
|
3,998
|
|
|
|
|
4,005
|
|
Retained earnings
|
|
|
|
|
|
|
12,371
|
|
|
|
|
12,229
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
|
|
(4,250
|
)
|
|
|
|
(4,596
|
)
|
Less: Treasury stock, at cost
|
|
|
|
|
|
|
(7,235
|
)
|
|
|
|
(7,253
|
)
|
Total Praxair, Inc. Shareholders' Equity
|
|
|
|
|
|
|
4,888
|
|
|
|
|
4,389
|
|
Noncontrolling interests
|
|
|
|
|
|
|
417
|
|
|
|
|
404
|
|
TOTAL EQUITY
|
|
|
|
|
|
|
5,305
|
|
|
|
|
4,793
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
|
|
|
$
|
19,025
|
|
|
|
$
|
18,319
|
|
|
|
PRAXAIR, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Millions of dollars)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
Net income - Praxair, Inc.
|
|
|
|
|
|
$
|
356
|
|
|
|
|
$
|
416
|
|
Noncontrolling interests
|
|
|
|
|
|
|
10
|
|
|
|
|
|
12
|
|
Net income (including noncontrolling interests)
|
|
|
|
|
|
|
366
|
|
|
|
|
|
428
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided
|
|
|
|
|
|
|
|
|
|
|
by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
272
|
|
|
|
|
|
277
|
|
Accounts receivable
|
|
|
|
|
|
|
(20
|
)
|
|
|
|
|
(50
|
)
|
Inventory
|
|
|
|
|
|
|
(7
|
)
|
|
|
|
|
(6
|
)
|
Payables and accruals
|
|
|
|
|
|
|
(77
|
)
|
|
|
|
|
(66
|
)
|
Pension contributions
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
(11
|
)
|
Deferred income taxes and other
|
|
|
|
|
|
|
15
|
|
|
|
|
|
(64
|
)
|
Net cash provided by operating activities
|
|
|
|
|
|
|
547
|
|
|
|
|
|
508
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
|
|
(323
|
)
|
|
|
|
|
(397
|
)
|
Acquisitions, net of cash acquired
|
|
|
|
|
|
|
(63
|
)
|
|
|
|
|
(5
|
)
|
Divestitures and asset sales
|
|
|
|
|
|
|
2
|
|
|
|
|
|
2
|
|
Net cash used for investing activities
|
|
|
|
|
|
|
(384
|
)
|
|
|
|
|
(400
|
)
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING
|
|
|
|
|
|
|
|
|
|
|
Debt increase (decrease) - net
|
|
|
|
|
|
|
95
|
|
|
|
|
|
290
|
|
Issuances of common stock
|
|
|
|
|
|
|
34
|
|
|
|
|
|
44
|
|
Purchases of common stock
|
|
|
|
|
|
|
(32
|
)
|
|
|
|
|
(235
|
)
|
Cash dividends - Praxair, Inc. shareholders
|
|
|
|
|
|
|
(214
|
)
|
|
|
|
|
(207
|
)
|
Excess tax benefit on stock option exercises
|
|
|
|
|
|
|
6
|
|
|
|
|
|
14
|
|
Noncontrolling interest transactions and other
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
(6
|
)
|
Net cash provided by (used for) financing activities
|
|
|
|
|
|
|
(113
|
)
|
|
|
|
|
(100
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and
|
|
|
|
|
|
|
|
|
|
|
cash equivalents
|
|
|
|
|
|
|
24
|
|
|
|
|
|
(17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
|
|
|
|
74
|
|
|
|
|
|
(9
|
)
|
Cash and cash equivalents, beginning-of-period
|
|
|
|
|
|
|
147
|
|
|
|
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end-of-period
|
|
|
|
|
|
$
|
221
|
|
|
|
|
$
|
117
|
|
|
|
PRAXAIR, INC. AND SUBSIDIARIES
|
SEGMENT INFORMATION
|
(Millions of dollars)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
SALES
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
$
|
1,353
|
|
|
|
$
|
1,499
|
Europe
|
|
|
|
|
|
|
|
320
|
|
|
|
|
326
|
South America
|
|
|
|
|
|
|
|
311
|
|
|
|
|
401
|
Asia
|
|
|
|
|
|
|
|
376
|
|
|
|
|
371
|
Surface Technologies
|
|
|
|
|
|
|
|
149
|
|
|
|
|
160
|
Consolidated sales
|
|
|
|
|
|
|
$
|
2,509
|
|
|
|
$
|
2,757
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
$
|
349
|
|
|
|
$
|
379
|
Europe
|
|
|
|
|
|
|
|
62
|
|
|
|
|
62
|
South America
|
|
|
|
|
|
|
|
55
|
|
|
|
|
85
|
Asia
|
|
|
|
|
|
|
|
63
|
|
|
|
|
69
|
Surface Technologies
|
|
|
|
|
|
|
|
25
|
|
|
|
|
28
|
Segment operating profit
|
|
|
|
|
|
|
$
|
554
|
|
|
|
$
|
623
|
|
|
PRAXAIR, INC. AND SUBSIDIARIES
|
QUARTERLY FINANCIAL SUMMARY
|
(Millions of dollars, except per share data)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
2016 (b)
|
|
|
2015 (c)
|
|
|
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
FROM THE INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
$
|
2,509
|
|
|
|
$
|
2,595
|
|
|
|
$
|
2,686
|
|
|
|
$
|
2,738
|
|
|
|
$
|
2,757
|
|
Cost of sales
|
|
|
|
|
|
|
1,381
|
|
|
|
|
1,426
|
|
|
|
|
1,488
|
|
|
|
|
1,516
|
|
|
|
|
1,530
|
|
Selling, general and administrative
|
|
|
|
|
|
|
274
|
|
|
|
|
275
|
|
|
|
|
281
|
|
|
|
|
297
|
|
|
|
|
299
|
|
Depreciation and amortization
|
|
|
|
|
|
|
272
|
|
|
|
|
275
|
|
|
|
|
276
|
|
|
|
|
278
|
|
|
|
|
277
|
|
Research and development
|
|
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
|
|
24
|
|
Cost reduction program and other charges
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
26
|
|
|
|
|
146
|
|
|
|
|
-
|
|
Other income (expense) - net
|
|
|
|
|
|
|
(5
|
)
|
|
|
|
28
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
(4
|
)
|
Operating profit
|
|
|
|
|
|
|
554
|
|
|
|
|
624
|
|
|
|
|
594
|
|
|
|
|
480
|
|
|
|
|
623
|
|
Interest expense - net
|
|
|
|
|
|
|
65
|
|
|
|
|
42
|
|
|
|
|
35
|
|
|
|
|
40
|
|
|
|
|
44
|
|
Income taxes
|
|
|
|
|
|
|
133
|
|
|
|
|
163
|
|
|
|
|
156
|
|
|
|
|
131
|
|
|
|
|
162
|
|
Income from equity investments
|
|
|
|
|
|
|
10
|
|
|
|
|
12
|
|
|
|
|
10
|
|
|
|
|
10
|
|
|
|
|
11
|
|
Net income (including noncontrolling interests)
|
|
|
|
|
|
|
366
|
|
|
|
|
431
|
|
|
|
|
413
|
|
|
|
|
319
|
|
|
|
|
428
|
|
Less: noncontrolling interests
|
|
|
|
|
|
|
(10
|
)
|
|
|
|
(9
|
)
|
|
|
|
(12
|
)
|
|
|
|
(11
|
)
|
|
|
|
(12
|
)
|
Net income - Praxair, Inc.
|
|
|
|
|
|
$
|
356
|
|
|
|
$
|
422
|
|
|
|
$
|
401
|
|
|
|
$
|
308
|
|
|
|
$
|
416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
|
|
$
|
1.24
|
|
|
|
$
|
1.47
|
|
|
|
$
|
1.40
|
|
|
|
$
|
1.06
|
|
|
|
$
|
1.43
|
|
Cash dividends per share
|
|
|
|
|
|
$
|
0.75
|
|
|
|
$
|
0.715
|
|
|
|
$
|
0.715
|
|
|
|
$
|
0.715
|
|
|
|
$
|
0.715
|
|
Diluted weighted average shares outstanding (000's)
|
|
|
|
|
|
|
286,665
|
|
|
|
|
286,856
|
|
|
|
|
287,311
|
|
|
|
|
290,102
|
|
|
|
|
291,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED AMOUNTS (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
|
$
|
554
|
|
|
|
$
|
624
|
|
|
|
$
|
620
|
|
|
|
$
|
626
|
|
|
|
$
|
623
|
|
Operating margin
|
|
|
|
|
|
|
22.1
|
%
|
|
|
|
24.0
|
%
|
|
|
|
23.1
|
%
|
|
|
|
22.9
|
%
|
|
|
|
22.6
|
%
|
Net Income
|
|
|
|
|
|
$
|
366
|
|
|
|
$
|
422
|
|
|
|
$
|
419
|
|
|
|
$
|
420
|
|
|
|
$
|
416
|
|
Diluted earnings per share
|
|
|
|
|
|
$
|
1.28
|
|
|
|
$
|
1.47
|
|
|
|
$
|
1.46
|
|
|
|
$
|
1.45
|
|
|
|
$
|
1.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FROM THE BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt (a)
|
|
|
|
|
|
$
|
9,183
|
|
|
|
$
|
9,084
|
|
|
|
$
|
9,344
|
|
|
|
$
|
9,177
|
|
|
|
$
|
9,243
|
|
Capital (a)
|
|
|
|
|
|
$
|
14,607
|
|
|
|
$
|
13,990
|
|
|
|
$
|
14,157
|
|
|
|
$
|
14,696
|
|
|
|
$
|
14,806
|
|
Debt-to-capital ratio (a)
|
|
|
|
|
|
|
62.9
|
%
|
|
|
|
64.9
|
%
|
|
|
|
66.0
|
%
|
|
|
|
62.4
|
%
|
|
|
|
62.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FROM THE STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operations
|
|
|
|
|
|
$
|
547
|
|
|
|
$
|
791
|
|
|
|
$
|
676
|
|
|
|
$
|
707
|
|
|
|
$
|
508
|
|
Cash flow used for investing activities
|
|
|
|
|
|
|
384
|
|
|
|
|
351
|
|
|
|
|
400
|
|
|
|
|
152
|
|
|
|
|
400
|
|
Cash flow used for financing activities
|
|
|
|
|
|
|
113
|
|
|
|
|
410
|
|
|
|
|
260
|
|
|
|
|
527
|
|
|
|
|
100
|
|
Capital expenditures
|
|
|
|
|
|
|
323
|
|
|
|
|
387
|
|
|
|
|
405
|
|
|
|
|
352
|
|
|
|
|
397
|
|
Acquisitions
|
|
|
|
|
|
|
63
|
|
|
|
|
39
|
|
|
|
|
-
|
|
|
|
|
38
|
|
|
|
|
5
|
|
Cash dividends
|
|
|
|
|
|
|
214
|
|
|
|
|
204
|
|
|
|
|
203
|
|
|
|
|
205
|
|
|
|
|
207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax return on capital (ROC) (a)
|
|
|
|
|
|
|
12.4
|
%
|
|
|
|
12.6
|
%
|
|
|
|
12.5
|
%
|
|
|
|
12.6
|
%
|
|
|
|
12.7
|
%
|
Return on Praxair, Inc. shareholders' equity (ROE) (a)
|
|
|
|
|
|
|
34.6
|
%
|
|
|
|
34.6
|
%
|
|
|
|
32.5
|
%
|
|
|
|
30.5
|
%
|
|
|
|
29.6
|
%
|
Adjusted EBITDA (a)
|
|
|
|
|
|
$
|
836
|
|
|
|
$
|
911
|
|
|
|
$
|
906
|
|
|
|
$
|
914
|
|
|
|
$
|
911
|
|
Adjusted EBITDA margin (a)
|
|
|
|
|
|
|
33.3
|
%
|
|
|
|
35.1
|
%
|
|
|
|
33.7
|
%
|
|
|
|
33.4
|
%
|
|
|
|
33.0
|
%
|
Debt-to-adjusted EBITDA ratio (a)
|
|
|
|
|
|
|
2.6
|
|
|
|
|
2.5
|
|
|
|
|
2.5
|
|
|
|
|
2.4
|
|
|
|
|
2.3
|
|
Number of employees
|
|
|
|
|
|
|
26,558
|
|
|
|
|
26,657
|
|
|
|
|
26,989
|
|
|
|
|
27,302
|
|
|
|
|
27,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
$
|
1,353
|
|
|
|
$
|
1,421
|
|
|
|
$
|
1,463
|
|
|
|
$
|
1,482
|
|
|
|
$
|
1,499
|
|
Europe
|
|
|
|
|
|
|
320
|
|
|
|
|
325
|
|
|
|
|
338
|
|
|
|
|
331
|
|
|
|
|
326
|
|
South America
|
|
|
|
|
|
|
311
|
|
|
|
|
299
|
|
|
|
|
343
|
|
|
|
|
388
|
|
|
|
|
401
|
|
Asia
|
|
|
|
|
|
|
376
|
|
|
|
|
398
|
|
|
|
|
395
|
|
|
|
|
387
|
|
|
|
|
371
|
|
Surface Technologies
|
|
|
|
|
|
|
149
|
|
|
|
|
152
|
|
|
|
|
147
|
|
|
|
|
150
|
|
|
|
|
160
|
|
Total sales
|
|
|
|
|
|
$
|
2,509
|
|
|
|
$
|
2,595
|
|
|
|
$
|
2,686
|
|
|
|
$
|
2,738
|
|
|
|
$
|
2,757
|
|
OPERATING PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
$
|
349
|
|
|
|
$
|
406
|
|
|
|
$
|
385
|
|
|
|
$
|
388
|
|
|
|
$
|
379
|
|
Europe
|
|
|
|
|
|
|
62
|
|
|
|
|
62
|
|
|
|
|
63
|
|
|
|
|
63
|
|
|
|
|
62
|
|
South America
|
|
|
|
|
|
|
55
|
|
|
|
|
55
|
|
|
|
|
70
|
|
|
|
|
81
|
|
|
|
|
85
|
|
Asia
|
|
|
|
|
|
|
63
|
|
|
|
|
74
|
|
|
|
|
77
|
|
|
|
|
69
|
|
|
|
|
69
|
|
Surface Technologies
|
|
|
|
|
|
|
25
|
|
|
|
|
27
|
|
|
|
|
25
|
|
|
|
|
25
|
|
|
|
|
28
|
|
Segment operating profit
|
|
|
|
|
|
|
554
|
|
|
|
|
624
|
|
|
|
|
620
|
|
|
|
|
626
|
|
|
|
|
623
|
|
Cost reduction program and other charges
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(26
|
)
|
|
|
|
(146
|
)
|
|
|
|
-
|
|
Total operating profit
|
|
|
|
|
|
$
|
554
|
|
|
|
$
|
624
|
|
|
|
$
|
594
|
|
|
|
$
|
480
|
|
|
|
$
|
623
|
|
|
(a)
|
|
Non-GAAP measure, see Appendix.
|
|
|
|
(b)
|
|
2016 includes a $16 million charge to interest expense ($10 million
after-tax, or $0.04 per diluted share) related to the redemption of
the $325 million 5.20% notes due in 2017.
|
|
|
|
(c)
|
|
2015 includes (i) a pre-tax pension settlement charge of $7 million
($5 million after-tax, or $0.02 per diluted share) in the third
quarter related to lump sum benefit payments made from the U.S.
supplemental pension plan, and (ii) pre-tax charges of $19 million
($13 million after-tax, or $0.04 per diluted share) in the third
quarter and $146 million ($112 million after-tax and non-controlling
interests, or $0.39 per diluted share) in the second quarter,
primarily related to cost reduction actions taken in response to
lower volumes resulting from economic slowdown in emerging markets
and energy related end-markets. The cost reduction charges by
segment are as follows: $67 million in South America; $34 million in
North America; $25 million in Asia; $20 million in Europe; and $19
million in Surface Technologies.
|
|
PRAXAIR, INC. AND SUBSIDIARIES
|
APPENDIX
|
NON-GAAP MEASURES
|
(Millions of dollars, except per share data)
|
(UNAUDITED)
|
|
The following non-GAAP measures are intended to supplement
investors’ understanding of the company’s financial information by
providing measures which investors, financial analysts and
management use to help evaluate the company’s financial leverage,
return on capital and operating performance. Items which the company
does not believe to be indicative of on-going business trends are
excluded from these calculations so that investors can better
evaluate and analyze historical and future business trends on a
consistent basis. Definitions of these non-GAAP measures may not be
comparable to similar definitions used by other companies and are
not a substitute for similar GAAP measures. Adjusted amounts exclude
the impacts of the 2016 first quarter bond redemption, 2015 third
quarter cost reduction program and pension settlement, 2015 second
quarter cost reduction program and other charges, and 2014 fourth
quarter pension settlement, bond redemption and loss on Venezuela
currency devaluation.
|
|
|
|
2016
|
|
2015
|
|
2014
|
|
Q1
|
|
Q4
|
Q3
|
Q2
|
Q1
|
|
Q4
|
Q3
|
Q2
|
Q1
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow (FCF) - Free
cash flow is a measure used by investors, financial analysts and
management to evaluate the ability of a company to pursue
opportunities that enhance shareholder value. FCF equals cash flow
from operations less capital expenditures.
|
|
|
|
|
Operating cash flow
|
|
$
|
547
|
|
|
$
|
791
|
|
$
|
676
|
|
$
|
707
|
|
$
|
508
|
|
|
$
|
772
|
|
$
|
713
|
|
$
|
847
|
|
$
|
536
|
|
Less: capital expenditures
|
|
|
(323
|
)
|
|
|
(387
|
)
|
|
(405
|
)
|
|
(352
|
)
|
|
(397
|
)
|
|
|
(482
|
)
|
|
(430
|
)
|
|
(384
|
)
|
|
(393
|
)
|
Free Cash Flow
|
|
$
|
224
|
|
|
$
|
404
|
|
$
|
271
|
|
$
|
355
|
|
$
|
111
|
|
|
$
|
290
|
|
$
|
283
|
|
$
|
463
|
|
$
|
143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-to-Capital Ratio - The
debt-to-capital ratio is a measure used by investors, financial
analysts and management to provide a measure of financial leverage
and insights into how the company is financing its operations.
|
|
|
|
|
Debt
|
|
$
|
9,404
|
|
|
$
|
9,231
|
|
$
|
9,480
|
|
$
|
9,313
|
|
$
|
9,360
|
|
|
$
|
9,225
|
|
$
|
9,090
|
|
$
|
9,132
|
|
$
|
9,236
|
|
Less: cash and cash equivalents
|
|
|
(221
|
)
|
|
|
(147
|
)
|
|
(136
|
)
|
|
(136
|
)
|
|
(117
|
)
|
|
|
(126
|
)
|
|
(168
|
)
|
|
(173
|
)
|
|
(144
|
)
|
Net debt
|
|
|
9,183
|
|
|
|
9,084
|
|
|
9,344
|
|
|
9,177
|
|
|
9,243
|
|
|
|
9,099
|
|
|
8,922
|
|
|
8,959
|
|
|
9,092
|
|
Equity and redeemable noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
119
|
|
|
|
113
|
|
|
169
|
|
|
175
|
|
|
170
|
|
|
|
176
|
|
|
190
|
|
|
194
|
|
|
195
|
|
Praxair, Inc. shareholders' equity
|
|
|
4,888
|
|
|
|
4,389
|
|
|
4,264
|
|
|
4,964
|
|
|
5,018
|
|
|
|
5,623
|
|
|
6,552
|
|
|
6,911
|
|
|
6,600
|
|
Noncontrolling interests
|
|
|
417
|
|
|
|
404
|
|
|
380
|
|
|
380
|
|
|
375
|
|
|
|
387
|
|
|
388
|
|
|
395
|
|
|
398
|
|
Total equity and redeemable noncontrolling interests
|
|
|
5,424
|
|
|
|
4,906
|
|
|
4,813
|
|
|
5,519
|
|
|
5,563
|
|
|
|
6,186
|
|
|
7,130
|
|
|
7,500
|
|
|
7,193
|
|
Capital
|
|
$
|
14,607
|
|
|
$
|
13,990
|
|
$
|
14,157
|
|
$
|
14,696
|
|
$
|
14,806
|
|
|
$
|
15,285
|
|
$
|
16,052
|
|
$
|
16,459
|
|
$
|
16,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-to-capital
|
|
|
62.9
|
%
|
|
|
64.9
|
%
|
|
66.0
|
%
|
|
62.4
|
%
|
|
62.4
|
%
|
|
|
59.5
|
%
|
|
55.6
|
%
|
|
54.4
|
%
|
|
55.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax Return on Capital (ROC)
- After-tax return on capital is a measure used by investors,
financial analysts and management to evaluate the return on net
assets employed in the business. ROC measures the after-tax
operating profit that the company was able to generate with the
investments made by all parties in the business (debt,
noncontrolling interests and Praxair, Inc. shareholders’ equity).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit (a)
|
|
$
|
554
|
|
|
$
|
624
|
|
$
|
620
|
|
$
|
626
|
|
$
|
623
|
|
|
$
|
663
|
|
$
|
711
|
|
$
|
697
|
|
$
|
675
|
|
Less: adjusted income taxes (a)
|
|
|
(139
|
)
|
|
|
(163
|
)
|
|
(164
|
)
|
|
(164
|
)
|
|
(162
|
)
|
|
|
(161
|
)
|
|
(187
|
)
|
|
(183
|
)
|
|
(176
|
)
|
Less: tax benefit on adjusted interest expense (a)
|
|
|
(14
|
)
|
|
|
(12
|
)
|
|
(10
|
)
|
|
(11
|
)
|
|
(12
|
)
|
|
|
(12
|
)
|
|
(13
|
)
|
|
(12
|
)
|
|
(13
|
)
|
Add: income from equity investments
|
|
|
10
|
|
|
|
12
|
|
|
10
|
|
|
10
|
|
|
11
|
|
|
|
12
|
|
|
11
|
|
|
10
|
|
|
9
|
|
Adjusted net operating profit after-tax (NOPAT)
|
|
$
|
411
|
|
|
$
|
461
|
|
$
|
456
|
|
$
|
461
|
|
$
|
460
|
|
|
$
|
502
|
|
$
|
522
|
|
$
|
512
|
|
$
|
495
|
|
4-quarter trailing adjusted NOPAT
|
|
$
|
1,789
|
|
|
$
|
1,838
|
|
$
|
1,879
|
|
$
|
1,945
|
|
$
|
1,996
|
|
|
$
|
2,031
|
|
$
|
2,035
|
|
$
|
2,011
|
|
$
|
1,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending capital (see above)
|
|
$
|
14,607
|
|
|
$
|
13,990
|
|
$
|
14,157
|
|
$
|
14,696
|
|
$
|
14,806
|
|
|
$
|
15,285
|
|
$
|
16,052
|
|
$
|
16,459
|
|
$
|
16,285
|
|
5-quarter average ending capital
|
|
$
|
14,451
|
|
|
$
|
14,587
|
|
$
|
14,999
|
|
$
|
15,460
|
|
$
|
15,777
|
|
|
$
|
16,007
|
|
$
|
16,094
|
|
$
|
15,987
|
|
$
|
15,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax ROC (4-quarter trailing NOPAT / 5-quarter average
capital)
|
|
|
12.4
|
%
|
|
|
12.6
|
%
|
|
12.5
|
%
|
|
12.6
|
%
|
|
12.7
|
%
|
|
|
12.7
|
%
|
|
12.6
|
%
|
|
12.6
|
%
|
|
12.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Praxair, Inc. Shareholders'
Equity (ROE) - Return on Praxair, Inc. shareholders'
equity is a measure used by investors, financial analysts and
management to evaluate operating performance from a Praxair
shareholder perspective. ROE measures the net income attributable
to Praxair, Inc. that the company was able to generate with the
money shareholders have invested.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income - Praxair, Inc. (a)
|
|
$
|
366
|
|
|
$
|
422
|
|
$
|
419
|
|
$
|
420
|
|
$
|
416
|
|
|
$
|
460
|
|
$
|
477
|
|
$
|
467
|
|
$
|
448
|
|
4-quarter trailing adjusted net income - Praxair, Inc.
|
|
$
|
1,627
|
|
|
$
|
1,677
|
|
$
|
1,715
|
|
$
|
1,773
|
|
$
|
1,820
|
|
|
$
|
1,852
|
|
$
|
1,854
|
|
$
|
1,828
|
|
$
|
1,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Praxair, Inc. shareholders' equity
|
|
$
|
4,888
|
|
|
$
|
4,389
|
|
$
|
4,264
|
|
$
|
4,964
|
|
$
|
5,018
|
|
|
$
|
5,623
|
|
$
|
6,552
|
|
$
|
6,911
|
|
$
|
6,600
|
|
5-quarter average Praxair shareholders' equity
|
|
$
|
4,705
|
|
|
$
|
4,852
|
|
$
|
5,284
|
|
$
|
5,814
|
|
$
|
6,141
|
|
|
$
|
6,459
|
|
$
|
6,576
|
|
$
|
6,452
|
|
$
|
6,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROE (4-quarter trailing adjusted net income - Praxair, Inc. /
5-quarter average Praxair shareholders' equity)
|
|
|
34.6
|
%
|
|
|
34.6
|
%
|
|
32.5
|
%
|
|
30.5
|
%
|
|
29.6
|
%
|
|
|
28.7
|
%
|
|
28.2
|
%
|
|
28.3
|
%
|
|
28.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, Adjusted EBITDA Margin
and Debt-to-Adjusted EBITDA Ratio- These measures are
used by investors, financial analysts and management to assess a
company's ability to meet its financial obligations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income - Praxair, Inc. (a)
|
|
$
|
366
|
|
|
$
|
422
|
|
$
|
419
|
|
$
|
420
|
|
$
|
416
|
|
|
$
|
460
|
|
$
|
477
|
|
$
|
467
|
|
$
|
448
|
|
Add: adjusted noncontrolling interests (a)
|
|
|
10
|
|
|
|
9
|
|
|
12
|
|
|
12
|
|
|
12
|
|
|
|
11
|
|
|
13
|
|
|
14
|
|
|
14
|
|
Add: adjusted interest expense - net (a)
|
|
|
49
|
|
|
|
42
|
|
|
35
|
|
|
40
|
|
|
44
|
|
|
|
43
|
|
|
45
|
|
|
43
|
|
|
46
|
|
Add: adjusted income taxes (a)
|
|
|
139
|
|
|
|
163
|
|
|
164
|
|
|
164
|
|
|
162
|
|
|
|
161
|
|
|
187
|
|
|
183
|
|
|
176
|
|
Add: depreciation and amortization
|
|
|
272
|
|
|
|
275
|
|
|
276
|
|
|
278
|
|
|
277
|
|
|
|
291
|
|
|
301
|
|
|
293
|
|
|
285
|
|
Adjusted EBITDA
|
|
$
|
836
|
|
|
$
|
911
|
|
$
|
906
|
|
$
|
914
|
|
$
|
911
|
|
|
$
|
966
|
|
$
|
1,023
|
|
$
|
1,000
|
|
$
|
969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported sales
|
|
$
|
2,509
|
|
|
$
|
2,595
|
|
$
|
2,686
|
|
$
|
2,738
|
|
$
|
2,757
|
|
|
$
|
2,990
|
|
$
|
3,144
|
|
$
|
3,113
|
|
$
|
3,026
|
|
Adjusted EBITDA margin
|
|
|
33.3
|
%
|
|
|
35.1
|
%
|
|
33.7
|
%
|
|
33.4
|
%
|
|
33.0
|
%
|
|
|
32.3
|
%
|
|
32.5
|
%
|
|
32.1
|
%
|
|
32.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending net debt (see above)
|
|
$
|
9,183
|
|
|
$
|
9,084
|
|
$
|
9,344
|
|
$
|
9,177
|
|
$
|
9,243
|
|
|
$
|
9,099
|
|
$
|
8,922
|
|
$
|
8,959
|
|
$
|
9,092
|
|
5-quarter average net debt
|
|
$
|
9,206
|
|
|
$
|
9,189
|
|
$
|
9,157
|
|
$
|
9,080
|
|
$
|
9,063
|
|
|
$
|
8,943
|
|
$
|
8,895
|
|
$
|
8,904
|
|
$
|
8,819
|
|
4-quarter trailing adjusted EBITDA
|
|
$
|
3,567
|
|
|
$
|
3,642
|
|
$
|
3,697
|
|
$
|
3,814
|
|
$
|
3,900
|
|
|
$
|
3,958
|
|
$
|
3,978
|
|
$
|
3,923
|
|
$
|
3,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-to-adjusted EBITDA ratio (5-quarter average net debt /
4-quarter trailing adjusted EBITDA)
|
|
|
2.6
|
|
|
|
2.5
|
|
|
2.5
|
|
|
2.4
|
|
|
2.3
|
|
|
|
2.3
|
|
|
2.2
|
|
|
2.3
|
|
|
2.3
|
|
|
(a)
|
|
The following table presents adjusted amounts for Operating Profit
and Operating Profit Margin, Interest Expense - net, Income Taxes,
Effective Tax Rate, Noncontrolling Interests, Net income - Praxair,
Inc., and Diluted EPS for the periods presented. Additionally, this
table presents cash income taxes and cash interest, net of interest
capitalized and excluding the bond redemption costs for 2016 and
2014; and presents the percentage changes in Diluted EPS Guidance
for the full year 2016 as compared to 2015 Diluted EPS on both a
GAAP and adjusted basis. The adjusted percentages are based on
Adjusted diluted EPS amounts, excluding estimated currency impacts.
|
|
|
|
|
|
|
|
First Quarter
|
|
|
Year
|
|
|
Third Quarter
|
|
|
Second Quarter
|
|
|
Year
|
|
|
Fourth Quarter
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
|
2014
|
Adjusted Operating Profit and Operating
Profit Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating profit
|
|
|
|
|
$
|
554
|
|
|
|
|
$
|
2,321
|
|
|
|
$
|
594
|
|
|
|
|
$
|
480
|
|
|
|
|
$
|
2,608
|
|
|
|
$
|
525
|
|
Add: Cost reduction program and other charges
|
|
|
|
|
|
-
|
|
|
|
|
|
165
|
|
|
|
|
19
|
|
|
|
|
|
146
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Add: Pension settlement charge
|
|
|
|
|
|
-
|
|
|
|
|
|
7
|
|
|
|
|
7
|
|
|
|
|
|
-
|
|
|
|
|
|
7
|
|
|
|
|
7
|
|
Add: Venezuela currency devaluation
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
131
|
|
|
|
|
131
|
|
Total adjustments
|
|
|
|
|
|
-
|
|
|
|
|
|
172
|
|
|
|
|
26
|
|
|
|
|
|
146
|
|
|
|
|
|
138
|
|
|
|
|
138
|
|
Adjusted operating profit
|
|
|
|
|
$
|
554
|
|
|
|
|
$
|
2,493
|
|
|
|
$
|
620
|
|
|
|
|
$
|
626
|
|
|
|
|
$
|
2,746
|
|
|
|
$
|
663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported percentage change
|
|
|
|
|
|
-11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted percentage change
|
|
|
|
|
|
-11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported sales
|
|
|
|
|
$
|
2,509
|
|
|
|
|
$
|
10,776
|
|
|
|
$
|
2,686
|
|
|
|
|
$
|
2,738
|
|
|
|
|
$
|
12,273
|
|
|
|
$
|
2,990
|
|
Adjusted operating profit margin
|
|
|
|
|
|
22.1
|
%
|
|
|
|
|
23.1
|
%
|
|
|
|
23.1
|
%
|
|
|
|
|
22.9
|
%
|
|
|
|
|
22.4
|
%
|
|
|
|
22.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Interest Expense - net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported interest expense - net
|
|
|
|
|
$
|
65
|
|
|
|
|
$
|
161
|
|
|
|
$
|
35
|
|
|
|
|
$
|
40
|
|
|
|
|
$
|
213
|
|
|
|
$
|
79
|
|
Less: Bond redemption
|
|
|
|
|
|
(16
|
)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
(36
|
)
|
|
|
|
(36
|
)
|
Adjusted interest expense - net
|
|
|
|
|
$
|
49
|
|
|
|
|
$
|
161
|
|
|
|
$
|
35
|
|
|
|
|
$
|
40
|
|
|
|
|
$
|
177
|
|
|
|
$
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income taxes
|
|
|
|
|
$
|
133
|
|
|
|
|
$
|
612
|
|
|
|
$
|
156
|
|
|
|
|
$
|
131
|
|
|
|
|
$
|
691
|
|
|
|
$
|
145
|
|
Add: Cost reduction program and other charges
|
|
|
|
|
|
-
|
|
|
|
|
|
39
|
|
|
|
|
6
|
|
|
|
|
|
33
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Add: Bond redemption
|
|
|
|
|
|
6
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
14
|
|
|
|
|
14
|
|
Add: Income tax benefit
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Add: Pension settlement charge
|
|
|
|
|
|
-
|
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
|
-
|
|
|
|
|
|
2
|
|
|
|
|
2
|
|
Total adjustments
|
|
|
|
|
|
6
|
|
|
|
|
|
41
|
|
|
|
|
8
|
|
|
|
|
|
33
|
|
|
|
|
|
16
|
|
|
|
|
16
|
|
Adjusted income taxes
|
|
|
|
|
$
|
139
|
|
|
|
|
$
|
653
|
|
|
|
$
|
164
|
|
|
|
|
$
|
164
|
|
|
|
|
$
|
707
|
|
|
|
$
|
161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective Tax Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income before income taxes and equity investments
|
|
|
|
|
$
|
489
|
|
|
|
|
$
|
2,160
|
|
|
|
$
|
559
|
|
|
|
|
$
|
440
|
|
|
|
|
$
|
2,395
|
|
|
|
$
|
446
|
|
Add: Cost reduction program and other charges
|
|
|
|
|
|
-
|
|
|
|
|
|
165
|
|
|
|
|
19
|
|
|
|
|
|
146
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Add: Bond redemption
|
|
|
|
|
|
16
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
36
|
|
|
|
|
36
|
|
Add: Pension settlement charge
|
|
|
|
|
|
-
|
|
|
|
|
|
7
|
|
|
|
|
7
|
|
|
|
|
|
-
|
|
|
|
|
|
7
|
|
|
|
|
7
|
|
Add: Venezuela currency devaluation
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
131
|
|
|
|
|
131
|
|
Total adjustments
|
|
|
|
|
|
16
|
|
|
|
|
|
172
|
|
|
|
|
26
|
|
|
|
|
|
146
|
|
|
|
|
|
174
|
|
|
|
|
174
|
|
Adjusted income before income taxes and equity investments
|
|
|
|
|
$
|
505
|
|
|
|
|
$
|
2,332
|
|
|
|
$
|
585
|
|
|
|
|
$
|
586
|
|
|
|
|
$
|
2,569
|
|
|
|
$
|
620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income taxes (above)
|
|
|
|
|
$
|
139
|
|
|
|
|
$
|
653
|
|
|
|
$
|
164
|
|
|
|
|
$
|
164
|
|
|
|
|
$
|
707
|
|
|
|
$
|
161
|
|
Adjusted effective tax rate
|
|
|
|
|
|
28
|
%
|
|
|
|
|
28
|
%
|
|
|
|
28
|
%
|
|
|
|
|
28
|
%
|
|
|
|
|
28
|
%
|
|
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Noncontrolling Interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported noncontrolling interests
|
|
|
|
|
$
|
10
|
|
|
|
|
$
|
44
|
|
|
|
$
|
12
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
52
|
|
|
|
$
|
11
|
|
Add: Cost reduction program and other charges
|
|
|
|
|
|
-
|
|
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
|
1
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Less: Income tax benefit
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Total adjustments
|
|
|
|
|
|
-
|
|
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
|
1
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Adjusted noncontrolling interests
|
|
|
|
|
$
|
10
|
|
|
|
|
$
|
45
|
|
|
|
$
|
12
|
|
|
|
|
$
|
12
|
|
|
|
|
$
|
52
|
|
|
|
$
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income - Praxair, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income - Praxair, Inc.
|
|
|
|
|
$
|
356
|
|
|
|
|
$
|
1,547
|
|
|
|
$
|
401
|
|
|
|
|
$
|
308
|
|
|
|
|
$
|
1,694
|
|
|
|
$
|
302
|
|
Add: Cost reduction program and other charges
|
|
|
|
|
|
-
|
|
|
|
|
|
125
|
|
|
|
|
13
|
|
|
|
|
|
112
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Add: Bond redemption
|
|
|
|
|
|
10
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
22
|
|
|
|
|
22
|
|
Add: Pension settlement charge
|
|
|
|
|
|
-
|
|
|
|
|
|
5
|
|
|
|
|
5
|
|
|
|
|
|
-
|
|
|
|
|
|
5
|
|
|
|
|
5
|
|
Add: Venezuela currency devaluation
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
131
|
|
|
|
|
131
|
|
Total adjustments
|
|
|
|
|
|
10
|
|
|
|
|
|
130
|
|
|
|
|
18
|
|
|
|
|
|
112
|
|
|
|
|
|
158
|
|
|
|
|
158
|
|
Adjusted net income - Praxair, Inc.
|
|
|
|
|
$
|
366
|
|
|
|
|
$
|
1,677
|
|
|
|
$
|
419
|
|
|
|
|
$
|
420
|
|
|
|
|
$
|
1,852
|
|
|
|
$
|
460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported percentage change
|
|
|
|
|
|
-14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted percentage change
|
|
|
|
|
|
-12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported diluted EPS
|
|
|
|
|
$
|
1.24
|
|
|
|
|
$
|
5.35
|
|
|
|
$
|
1.40
|
|
|
|
|
$
|
1.06
|
|
|
|
|
$
|
5.73
|
|
|
|
$
|
1.03
|
|
Add: Cost reduction program and other charges
|
|
|
|
|
|
-
|
|
|
|
|
|
0.43
|
|
|
|
|
0.04
|
|
|
|
|
|
0.39
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Add: Bond redemption
|
|
|
|
|
|
0.04
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
0.07
|
|
|
|
|
0.07
|
|
Add: Pension settlement charge
|
|
|
|
|
|
-
|
|
|
|
|
|
0.02
|
|
|
|
|
0.02
|
|
|
|
|
|
-
|
|
|
|
|
|
0.02
|
|
|
|
|
0.02
|
|
Add: Venezuela currency devaluation
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
0.45
|
|
|
|
|
0.45
|
|
Total adjustments
|
|
|
|
|
|
0.04
|
|
|
|
|
|
0.45
|
|
|
|
|
0.06
|
|
|
|
|
|
0.39
|
|
|
|
|
|
0.54
|
|
|
|
|
0.54
|
|
Adjusted diluted EPS
|
|
|
|
|
$
|
1.28
|
|
|
|
|
$
|
5.80
|
|
|
|
$
|
1.46
|
|
|
|
|
$
|
1.45
|
|
|
|
|
$
|
6.27
|
|
|
|
$
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Income Taxes and Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid
|
|
|
|
|
|
|
|
|
$
|
420
|
|
|
|
|
|
|
|
|
|
|
|
$
|
606
|
|
|
|
|
Interest paid, net of interest capitalized and excluding bond
redemption
|
|
|
|
|
|
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-Year 2016 Diluted EPS Guidance*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low End
|
|
|
High End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 adjusted diluted EPS guidance
|
|
|
|
|
$
|
5.35
|
|
|
|
|
$
|
5.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 adjusted diluted EPS (see above for full year amounts)
|
|
|
|
|
$
|
5.80
|
|
|
|
|
$
|
5.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted percentage change
|
|
|
|
|
|
-8
|
%
|
|
|
|
|
-2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted percentage changes, excluding estimated currency impact
|
|
|
|
|
|
-2
|
%
|
|
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Excludes a bond redemption charge recorded in the first quarter
and the impact of a pension settlement charge expected to be
recorded in the third quarter.
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160429005134/en/ Copyright Business Wire 2016
Source: Business Wire
(April 29, 2016 - 6:01 AM EDT)
News by QuoteMedia
www.quotemedia.com
|