Praxair Reports Third-Quarter 2015 Results
-
Sales of $2.7 billion, adjusted EPS of $1.46
-
Adjusted EBITDA and operating margins grew to 33.7% and 23.1%,
respectively
-
Strong operating cash flow of $0.7 billion; $0.4 billion returned
to shareholders through dividends and net share repurchases
-
After-tax return on capital 12.5%; return on equity 32.5%
-
Adjusted EPS guidance: 2015 full year $5.78 to $5.85 and 4Q15 $1.45
to $1.52
Praxair, Inc. (NYSE: PX) reported third-quarter net income and diluted
earnings per share of $401 million and $1.40, respectively. These
results include the impact of a $26 million pre-tax charge ($18 million
after-tax) or 6 cents of diluted earnings per share, related to cost
reduction actions and a pension settlement charge. Excluding the charge,
adjusted net income and diluted earnings per share were $419 million and
$1.46, respectively.
Praxair’s results in the third quarter were challenged by negative
impacts from foreign currency translation, as the U.S. dollar
strengthened against most foreign currencies versus the prior year.
Sales in the third quarter were $2,686 million, 15% below the prior-year
quarter, primarily due to the impacts of negative currency translation
and lower cost pass-through which reduced sales by 11% and 2%,
respectively. Organic sales were lower than the prior-year quarter as
growth from positive price and new project start-ups were offset by
weaker underlying industrial activity in Brazil and China and in the
metals, energy and manufacturing end-markets in North America.
Reported operating profit in the third quarter was $594 million.
Adjusted operating profit of $620 million was 2% below the prior-year
quarter, excluding currency effects. Adjusted operating profit as a
percentage of sales grew to a record 23.1% and the adjusted EBITDA
margin grew to a record 33.7% primarily due to higher pricing, strong
cost control and productivity gains.
Third-quarter cash flow from operations of $676 million funded $405
million of capital expenditures. The company paid $203 million of
dividends and repurchased $222 million of stock, net of issuances.
After-tax return on capital and return on equity for the quarter were
12.5% and 32.5%, respectively.
Commenting on the financial results and business outlook, Chairman and
Chief Executive Officer Steve Angel said, “As anticipated, third-quarter
macroeconomic trends remained weak in North and South America. New
project start-ups in Asia and Europe as well as solid demand in the
less-cyclical end-markets of food, beverage and healthcare contributed
positively to volumes.
“Our employees excel at protecting and growing profitability regardless
of the economic cycle. The incremental cost actions we have taken during
the second and third quarters as well as ongoing operational excellence
resulted in a record operating margin. Cash flow generation remained
strong with operating cash flow at 25% of sales and we again returned
more than $400 million to shareholders.
“While we are expecting macro-economic conditions will remain
challenging, we will continue to drive long-term growth through our
strategy of building geographic density through high-return capital
projects, synergistic acquisitions and continued growth in more
defensive end-markets.”
For the fourth quarter of 2015, Praxair expects diluted earnings per
share in the range of $1.45 to $1.52. This EPS guidance assumes a
negative currency translation impact of approximately 11% year over year.
For full-year 2015, Praxair expects adjusted diluted earnings per share
to be in the range of $5.78 to $5.85, up 3% to 4% ex-currency from 2014.
This EPS guidance assumes a negative currency translation impact of
approximately 11% versus 2014. Full-year capital expenditures are
expected to be approximately $1.6 billion and the effective tax rate is
forecasted to remain at approximately 28%.
Following is additional detail on third-quarter 2015 results by segment.
In North America, third-quarter sales were $1,463 million, 3% below the
prior-year quarter excluding cost-pass through and negative currency
translation. Volume growth to food and beverage and healthcare customers
was more than offset by lower volumes to metals, energy and
manufacturing end-markets. Operating profit of $385 million was 2% lower
than the prior-year quarter, excluding currency translation, as price,
productivity and cost actions were more than offset by lower volumes.
In Europe, third-quarter sales were $338 million, 12% below the
prior-year quarter. Organic sales were 3% above the prior year primarily
driven by new project contribution. Operating profit of $63 million grew
4% from the prior year, excluding currency translation, due to solid
operating leverage on volume growth.
In South America, third-quarter sales were $343 million, 34% below the
prior-year quarter. Sales, excluding negative currency translation, were
steady as higher price and acquisitions were offset by lower volumes.
Operating profit was $70 million.
Sales in Asia were $395 million in the quarter, 7% below the prior-year
quarter. Excluding negative currency translation, cost pass-through and
the sale of equipment to a joint venture in the prior-year quarter,
sales grew 7%. Organic growth included new project start-ups in China,
Korea and India for chemical, electronics and metals customers.
Operating profit of $77 million was 9% above the prior year quarter,
excluding currency translation.
Praxair Surface Technologies had third-quarter sales of $147 million as
compared to $171 million in the prior-year quarter. Excluding negative
currency translation impact, organic sales were 7% lower than the
prior-year period. Favorable price was more than offset by weaker sales
to the energy end-market. Operating profit was $25 million.
Praxair, Inc., a Fortune 250 company with 2014 sales of $12.3 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. Third-quarter and full-year 2015
results are adjusted to exclude the impacts of cost reduction charges
and the third quarter is also adjusted to eliminate a pension settlement
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 third-quarter results is being held
this morning, October 29, at 11:00 am Eastern Daylight Time. The number
is (631) 485-4849 – Conference ID: 46550993. 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
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Quarter Ended September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Amounts
|
|
$
|
2,686
|
|
$
|
3,144
|
|
$
|
594
|
|
$
|
711
|
|
$
|
401
|
|
$
|
477
|
|
$
|
1.40
|
|
$
|
1.62
|
Pension settlement charge (a)
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|
0.02
|
|
|
-
|
Cost reduction program and other charges (b)
|
|
|
-
|
|
|
-
|
|
|
19
|
|
|
-
|
|
|
13
|
|
|
-
|
|
|
0.04
|
|
|
-
|
Total adjustments
|
|
|
-
|
|
|
-
|
|
|
26
|
|
|
-
|
|
|
18
|
|
|
-
|
|
|
0.06
|
|
|
-
|
Adjusted amounts
|
|
$
|
2,686
|
|
$
|
3,144
|
|
$
|
620
|
|
$
|
711
|
|
$
|
419
|
|
$
|
477
|
|
$
|
1.46
|
|
$
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year To Date September 30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP Amounts
|
|
$
|
8,181
|
|
$
|
9,283
|
|
$
|
1,697
|
|
$
|
2,083
|
|
$
|
1,125
|
|
$
|
1,392
|
|
$
|
3.88
|
|
$
|
4.70
|
Pension settlement charge (a)
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
-
|
|
|
5
|
|
|
-
|
|
|
0.02
|
|
|
-
|
Cost reduction program and other charges(b)
|
|
|
-
|
|
|
-
|
|
|
165
|
|
|
-
|
|
|
125
|
|
|
-
|
|
|
0.43
|
|
|
-
|
Total adjustments
|
|
|
-
|
|
|
-
|
|
|
172
|
|
|
-
|
|
|
130
|
|
|
-
|
|
|
0.45
|
|
|
-
|
Adjusted amounts
|
|
$
|
8,181
|
|
$
|
9,283
|
|
$
|
1,869
|
|
$
|
2,083
|
|
$
|
1,255
|
|
$
|
1,392
|
|
$
|
4.33
|
|
$
|
4.70
|
|
|
|
|
(a)
|
|
A pension settlement charge was recorded in the 2015 third quarter
related to lump sum benefit payments made from the U.S. supplemental
pension plan.
|
(b)
|
|
Cost reduction program and other charges were recorded in the 2015
second and third quarters.
|
|
|
|
|
PRAXAIR, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF INCOME (Millions of dollars, except per
share data) (UNAUDITED)
|
|
|
|
|
Quarter Ended September 30,
|
|
Year to Date September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
$
|
2,686
|
|
$
|
3,144
|
|
$
|
8,181
|
|
$
|
9,283
|
Cost of sales
|
|
|
1,488
|
|
|
1,780
|
|
|
4,534
|
|
|
5,273
|
Selling, general and administrative
|
|
|
281
|
|
|
327
|
|
|
877
|
|
|
988
|
Depreciation and amortization
|
|
|
276
|
|
|
301
|
|
|
831
|
|
|
879
|
Research and development
|
|
|
23
|
|
|
25
|
|
|
70
|
|
|
72
|
Cost reduction program and other charges
|
|
|
26
|
|
|
-
|
|
|
172
|
|
|
-
|
Other income (expense) - net
|
|
|
2
|
|
|
-
|
|
|
-
|
|
|
12
|
OPERATING PROFIT
|
|
|
594
|
|
|
711
|
|
|
1,697
|
|
|
2,083
|
Interest expense - net
|
|
|
35
|
|
|
45
|
|
|
119
|
|
|
134
|
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS
|
|
|
559
|
|
|
666
|
|
|
1,578
|
|
|
1,949
|
Income taxes
|
|
|
156
|
|
|
187
|
|
|
449
|
|
|
546
|
INCOME BEFORE EQUITY INVESTMENTS
|
|
|
403
|
|
|
479
|
|
|
1,129
|
|
|
1,403
|
Income from equity investments
|
|
|
10
|
|
|
11
|
|
|
31
|
|
|
30
|
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)
|
|
|
413
|
|
|
490
|
|
|
1,160
|
|
|
1,433
|
Less: noncontrolling interests
|
|
|
(12)
|
|
|
(13)
|
|
|
(35)
|
|
|
(41)
|
NET INCOME - PRAXAIR, INC.
|
|
$
|
401
|
|
$
|
477
|
|
$
|
1,125
|
|
$
|
1,392
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
1.40
|
|
$
|
1.63
|
|
$
|
3.91
|
|
$
|
4.75
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
1.40
|
|
$
|
1.62
|
|
$
|
3.88
|
|
$
|
4.70
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
$
|
0.715
|
|
$
|
0.65
|
|
$
|
2.145
|
|
$
|
1.95
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
Basic shares outstanding (000's)
|
|
|
285,651
|
|
|
292,170
|
|
|
287,578
|
|
|
293,103
|
Diluted shares outstanding (000's)
|
|
|
287,311
|
|
|
295,239
|
|
|
289,835
|
|
|
296,240
|
|
|
|
|
|
|
|
|
|
Note: See page 4 for a reconciliation to 2015 adjusted amounts which are
non-GAAP.
|
PRAXAIR, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (Millions of dollars) (UNAUDITED)
|
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
136
|
|
$
|
126
|
Accounts receivable - net
|
|
|
|
1,690
|
|
|
1,796
|
Inventories
|
|
|
|
526
|
|
|
551
|
Prepaid and other current assets
|
|
|
|
374
|
|
|
366
|
TOTAL CURRENT ASSETS
|
|
|
|
2,726
|
|
|
2,839
|
Property, plant and equipment - net
|
|
|
|
10,970
|
|
|
11,997
|
Goodwill
|
|
|
|
2,997
|
|
|
3,121
|
Other intangibles - net
|
|
|
|
567
|
|
|
603
|
Other long-term assets
|
|
|
|
1,196
|
|
|
1,242
|
TOTAL ASSETS
|
|
|
$
|
18,456
|
|
$
|
19,802
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
750
|
|
$
|
864
|
Short-term debt
|
|
|
|
458
|
|
|
587
|
Current portion of long-term debt
|
|
|
|
2
|
|
|
2
|
Other current liabilities
|
|
|
|
912
|
|
|
1,037
|
TOTAL CURRENT LIABILITIES
|
|
|
|
2,122
|
|
|
2,490
|
Long-term debt
|
|
|
|
9,057
|
|
|
8,669
|
Other long-term liabilities
|
|
|
|
2,464
|
|
|
2,457
|
TOTAL LIABILITIES
|
|
|
|
13,643
|
|
|
13,616
|
|
|
|
|
|
|
REDEEMABLE NONCONTROLLING INTERESTS
|
|
|
169
|
|
|
176
|
|
|
|
|
|
|
PRAXAIR, INC. SHAREHOLDERS' EQUITY:
|
|
|
|
|
Common stock
|
|
|
|
4
|
|
|
4
|
Additional paid-in capital
|
|
|
|
3,998
|
|
|
3,994
|
Retained earnings
|
|
|
|
11,966
|
|
|
11,461
|
Accumulated other comprehensive income (loss)
|
|
|
(4,456)
|
|
|
(3,185)
|
Less: Treasury stock, at cost
|
|
|
|
(7,248)
|
|
|
(6,651)
|
Total Praxair, Inc. Shareholders' Equity
|
|
|
|
4,264
|
|
|
5,623
|
Noncontrolling interests
|
|
|
|
380
|
|
|
387
|
TOTAL EQUITY
|
|
|
|
4,644
|
|
|
6,010
|
TOTAL LIABILITIES AND EQUITY
|
|
|
$
|
18,456
|
|
$
|
19,802
|
|
|
|
|
|
|
|
|
|
PRAXAIR, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of
dollars) (UNAUDITED)
|
|
|
|
|
|
|
|
|
Quarter Ended September 30,
|
|
Year to Date September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
OPERATIONS
|
|
|
|
|
|
|
|
|
Net income - Praxair, Inc.
|
|
$
|
401
|
|
$
|
477
|
|
$
|
1,125
|
|
$
|
1,392
|
Noncontrolling interests
|
|
|
12
|
|
|
13
|
|
|
35
|
|
|
41
|
Net income (including noncontrolling interests)
|
|
|
413
|
|
|
490
|
|
|
1,160
|
|
|
1,433
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided
|
|
|
|
|
|
|
|
|
by operating activities:
|
|
|
|
|
|
|
|
|
Cost reduction program and other charges, net of payments
|
|
|
4
|
|
|
-
|
|
|
139
|
|
|
-
|
Depreciation and amortization
|
|
|
276
|
|
|
301
|
|
|
831
|
|
|
879
|
Accounts receivable
|
|
|
(13)
|
|
|
25
|
|
|
(57)
|
|
|
(144)
|
Inventory
|
|
|
1
|
|
|
(19)
|
|
|
(14)
|
|
|
(52)
|
Payables and accruals
|
|
|
43
|
|
|
29
|
|
|
(20)
|
|
|
(3)
|
Pension contributions
|
|
|
(1)
|
|
|
(1)
|
|
|
(13)
|
|
|
(14)
|
Deferred income taxes and other
|
|
|
(47)
|
|
|
(112)
|
|
|
(135)
|
|
|
(3)
|
Net cash provided by operating activities
|
|
|
676
|
|
|
713
|
|
|
1,891
|
|
|
2,096
|
|
|
|
|
|
|
|
|
|
INVESTING
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(405)
|
|
|
(430)
|
|
|
(1,154)
|
|
|
(1,207)
|
Acquisitions, net of cash acquired
|
|
|
-
|
|
|
(21)
|
|
|
(43)
|
|
|
(191)
|
Divestitures and asset sales
|
|
|
5
|
|
|
15
|
|
|
245
|
|
|
86
|
Net cash used for investing activities
|
|
|
(400)
|
|
|
(436)
|
|
|
(952)
|
|
|
(1,312)
|
|
|
|
|
|
|
|
|
|
FINANCING
|
|
|
|
|
|
|
|
|
Debt increase (decrease) - net
|
|
|
170
|
|
|
30
|
|
|
371
|
|
|
394
|
Issuances of common stock
|
|
|
13
|
|
|
16
|
|
|
74
|
|
|
85
|
Purchases of common stock
|
|
|
(235)
|
|
|
(116)
|
|
|
(704)
|
|
|
(562)
|
Cash dividends - Praxair, Inc. shareholders
|
|
|
(203)
|
|
|
(189)
|
|
|
(615)
|
|
|
(570)
|
Excess tax benefit on stock option exercises
|
|
|
1
|
|
|
4
|
|
|
18
|
|
|
28
|
Noncontrolling interest transactions and other
|
|
|
(6)
|
|
|
(12)
|
|
|
(31)
|
|
|
(123)
|
Net cash provided by (used for) financing activities
|
|
|
(260)
|
|
|
(267)
|
|
|
(887)
|
|
|
(748)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and
|
|
|
|
|
|
|
|
|
cash equivalents
|
|
|
(16)
|
|
|
(15)
|
|
|
(42)
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
-
|
|
|
(5)
|
|
|
10
|
|
|
30
|
Cash and cash equivalents, beginning-of-period
|
|
|
136
|
|
|
173
|
|
|
126
|
|
|
138
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end-of-period
|
|
$
|
136
|
|
$
|
168
|
|
$
|
136
|
|
$
|
168
|
|
|
PRAXAIR, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Millions
of dollars) (UNAUDITED)
|
|
|
|
|
Quarter Ended September 30,
|
|
Year to Date September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
SALES
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
1,463
|
|
$
|
1,639
|
|
$
|
4,444
|
|
$
|
4,847
|
Europe
|
|
|
|
338
|
|
|
385
|
|
|
995
|
|
|
1,190
|
South America
|
|
|
|
343
|
|
|
523
|
|
|
1,132
|
|
|
1,520
|
Asia
|
|
|
|
395
|
|
|
426
|
|
|
1,153
|
|
|
1,212
|
Surface Technologies
|
|
|
|
147
|
|
|
171
|
|
|
457
|
|
|
514
|
Consolidated sales
|
|
|
$
|
2,686
|
|
$
|
3,144
|
|
$
|
8,181
|
|
$
|
9,283
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
385
|
|
$
|
416
|
|
$
|
1,152
|
|
$
|
1,192
|
Europe
|
|
|
|
63
|
|
|
71
|
|
|
188
|
|
|
228
|
South America
|
|
|
|
70
|
|
|
118
|
|
|
236
|
|
|
344
|
Asia
|
|
|
|
77
|
|
|
75
|
|
|
215
|
|
|
226
|
Surface Technologies
|
|
|
|
25
|
|
|
31
|
|
|
78
|
|
|
93
|
Segment operating profit
|
|
|
|
620
|
|
|
711
|
|
|
1,869
|
|
|
2,083
|
Cost reduction program and other charges
|
|
|
|
(26)
|
|
|
-
|
|
|
(172)
|
|
|
-
|
Total operating profit
|
|
|
$
|
594
|
|
$
|
711
|
|
$
|
1,697
|
|
$
|
2,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRAXAIR, INC. AND SUBSIDIARIES QUARTERLY FINANCIAL
SUMMARY (Millions of dollars, except per share data) (UNAUDITED)
|
|
|
|
2015 (b)
|
|
2014 (c)
|
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
FROM THE INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
2,686
|
|
$
|
2,738
|
|
$
|
2,757
|
|
$
|
2,990
|
|
$
|
3,144
|
|
$
|
3,113
|
|
$
|
3,026
|
Cost of sales
|
|
|
1,488
|
|
|
1,516
|
|
|
1,530
|
|
|
1,689
|
|
|
1,780
|
|
|
1,767
|
|
|
1,726
|
Selling, general and administrative
|
|
|
281
|
|
|
297
|
|
|
299
|
|
|
320
|
|
|
327
|
|
|
335
|
|
|
326
|
Depreciation and amortization
|
|
|
276
|
|
|
278
|
|
|
277
|
|
|
291
|
|
|
301
|
|
|
293
|
|
|
285
|
Research and development
|
|
|
23
|
|
|
23
|
|
|
24
|
|
|
24
|
|
|
25
|
|
|
24
|
|
|
23
|
Cost reduction program and other charges
|
|
|
26
|
|
|
146
|
|
|
-
|
|
|
138
|
|
|
-
|
|
|
-
|
|
|
-
|
Other income (expenses) - net
|
|
|
2
|
|
|
2
|
|
|
(4)
|
|
|
(3)
|
|
|
-
|
|
|
3
|
|
|
9
|
Operating profit
|
|
|
594
|
|
|
480
|
|
|
623
|
|
|
525
|
|
|
711
|
|
|
697
|
|
|
675
|
Interest expense - net
|
|
|
35
|
|
|
40
|
|
|
44
|
|
|
79
|
|
|
45
|
|
|
43
|
|
|
46
|
Income taxes
|
|
|
156
|
|
|
131
|
|
|
162
|
|
|
145
|
|
|
187
|
|
|
183
|
|
|
176
|
Income from equity investments
|
|
|
10
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
11
|
|
|
10
|
|
|
9
|
Net income (including noncontrolling interests)
|
|
|
413
|
|
|
319
|
|
|
428
|
|
|
313
|
|
|
490
|
|
|
481
|
|
|
462
|
Less: noncontrolling interests
|
|
|
(12)
|
|
|
(11)
|
|
|
(12)
|
|
|
(11)
|
|
|
(13)
|
|
|
(14)
|
|
|
(14)
|
Net income - Praxair, Inc.
|
|
$
|
401
|
|
$
|
308
|
|
$
|
416
|
|
$
|
302
|
|
$
|
477
|
|
$
|
467
|
|
$
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
1.40
|
|
$
|
1.06
|
|
$
|
1.43
|
|
$
|
1.03
|
|
$
|
1.62
|
|
$
|
1.58
|
|
$
|
1.51
|
Cash dividends per share
|
|
$
|
0.715
|
|
$
|
0.715
|
|
$
|
0.715
|
|
$
|
0.65
|
|
$
|
0.65
|
|
$
|
0.65
|
|
$
|
0.65
|
Diluted weighted average shares outstanding (000's)
|
|
|
287,311
|
|
|
290,102
|
|
|
291,652
|
|
|
293,555
|
|
|
295,239
|
|
|
295,976
|
|
|
297,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED AMOUNTS (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
$
|
620
|
|
$
|
626
|
|
$
|
623
|
|
$
|
663
|
|
$
|
711
|
|
$
|
697
|
|
$
|
675
|
Operating margin
|
|
|
23.1%
|
|
|
22.9%
|
|
|
22.6%
|
|
|
22.2%
|
|
|
22.6%
|
|
|
22.4%
|
|
|
22.3%
|
Net Income
|
|
$
|
419
|
|
$
|
420
|
|
$
|
416
|
|
$
|
460
|
|
$
|
477
|
|
$
|
467
|
|
$
|
448
|
Diluted earnings per share
|
|
$
|
1.46
|
|
$
|
1.45
|
|
$
|
1.43
|
|
$
|
1.57
|
|
$
|
1.62
|
|
$
|
1.58
|
|
$
|
1.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FROM THE BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt (a)
|
|
$
|
9,381
|
|
$
|
9,211
|
|
$
|
9,279
|
|
$
|
9,132
|
|
$
|
8,953
|
|
$
|
8,992
|
|
$
|
9,126
|
Capital (a)
|
|
$
|
14,194
|
|
$
|
14,730
|
|
$
|
14,842
|
|
$
|
15,318
|
|
$
|
16,083
|
|
$
|
16,492
|
|
$
|
16,319
|
Debt-to-capital ratio (a)
|
|
|
66.1%
|
|
|
62.5%
|
|
|
62.5%
|
|
|
59.6%
|
|
|
55.7%
|
|
|
54.5%
|
|
|
55.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FROM THE STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operations
|
|
$
|
676
|
|
$
|
707
|
|
$
|
508
|
|
$
|
772
|
|
$
|
713
|
|
$
|
847
|
|
$
|
536
|
Cash flow used for investing activities
|
|
|
400
|
|
|
152
|
|
|
400
|
|
|
491
|
|
|
436
|
|
|
425
|
|
|
451
|
Cash flow used for financing activities
|
|
|
260
|
|
|
527
|
|
|
100
|
|
|
260
|
|
|
267
|
|
|
397
|
|
|
84
|
Capital expenditures
|
|
|
405
|
|
|
352
|
|
|
397
|
|
|
482
|
|
|
430
|
|
|
384
|
|
|
393
|
Acquisitions
|
|
|
-
|
|
|
38
|
|
|
5
|
|
|
15
|
|
|
21
|
|
|
46
|
|
|
124
|
Cash dividends
|
|
|
203
|
|
|
205
|
|
|
207
|
|
|
189
|
|
|
189
|
|
|
190
|
|
|
191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax return on capital (ROC) (a)
|
|
|
12.5%
|
|
|
12.6%
|
|
|
12.6%
|
|
|
12.7%
|
|
|
12.6%
|
|
|
12.6%
|
|
|
12.6%
|
Return on Praxair, Inc. shareholders' equity (ROE) (a)
|
|
|
32.5%
|
|
|
30.5%
|
|
|
29.6%
|
|
|
28.7%
|
|
|
28.2%
|
|
|
28.3%
|
|
|
28.7%
|
Adjusted EBITDA (a)
|
|
$
|
906
|
|
$
|
914
|
|
$
|
911
|
|
$
|
966
|
|
$
|
1,023
|
|
$
|
1,000
|
|
$
|
969
|
Adjusted EBITDA margin (a)
|
|
|
33.7%
|
|
|
33.4%
|
|
|
33.0%
|
|
|
32.3%
|
|
|
32.5%
|
|
|
32.1%
|
|
|
32.0%
|
Debt-to-adjusted EBITDA ratio (a)
|
|
|
2.5
|
|
|
2.4
|
|
|
2.3
|
|
|
2.3
|
|
|
2.2
|
|
|
2.3
|
|
|
2.3
|
Number of employees
|
|
|
26,989
|
|
|
27,302
|
|
|
27,680
|
|
|
27,780
|
|
|
27,626
|
|
|
27,735
|
|
|
27,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
$
|
1,463
|
|
$
|
1,482
|
|
$
|
1,499
|
|
$
|
1,589
|
|
$
|
1,639
|
|
$
|
1,628
|
|
$
|
1,580
|
Europe
|
|
|
338
|
|
|
331
|
|
|
326
|
|
|
356
|
|
|
385
|
|
|
408
|
|
|
397
|
South America
|
|
|
343
|
|
|
388
|
|
|
401
|
|
|
473
|
|
|
523
|
|
|
509
|
|
|
488
|
Asia
|
|
|
395
|
|
|
387
|
|
|
371
|
|
|
407
|
|
|
426
|
|
|
394
|
|
|
392
|
Surface Technologies
|
|
|
147
|
|
|
150
|
|
|
160
|
|
|
165
|
|
|
171
|
|
|
174
|
|
|
169
|
Total sales
|
|
$
|
2,686
|
|
$
|
2,738
|
|
$
|
2,757
|
|
$
|
2,990
|
|
$
|
3,144
|
|
$
|
3,113
|
|
$
|
3,026
|
OPERATING PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
$
|
385
|
|
$
|
388
|
|
$
|
379
|
|
$
|
388
|
|
$
|
416
|
|
$
|
398
|
|
$
|
378
|
Europe
|
|
|
63
|
|
|
63
|
|
|
62
|
|
|
63
|
|
|
71
|
|
|
78
|
|
|
79
|
South America
|
|
|
70
|
|
|
81
|
|
|
85
|
|
|
105
|
|
|
118
|
|
|
113
|
|
|
113
|
Asia
|
|
|
77
|
|
|
69
|
|
|
69
|
|
|
77
|
|
|
75
|
|
|
76
|
|
|
75
|
Surface Technologies
|
|
|
25
|
|
|
25
|
|
|
28
|
|
|
30
|
|
|
31
|
|
|
32
|
|
|
30
|
Segment operating profit
|
|
|
620
|
|
|
626
|
|
|
623
|
|
|
663
|
|
|
711
|
|
|
697
|
|
|
675
|
Cost reduction program and other charges
|
|
|
(26)
|
|
|
(146)
|
|
|
-
|
|
|
(138)
|
|
|
-
|
|
|
-
|
|
|
-
|
Total operating profit
|
|
$
|
594
|
|
$
|
480
|
|
$
|
623
|
|
$
|
525
|
|
$
|
711
|
|
$
|
697
|
|
$
|
675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Non-GAAP measure, see Appendix.
|
|
|
|
(b)
|
|
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.
|
|
|
|
(c)
|
|
2014 includes: (i) a charge of $36 million ($22 million after-tax,
or $0.07 per diluted share) related to a bond redemption, (ii) a
charge of $7 million ($5 million after-tax, or $0.02 per diluted
share) related to pension settlement and (iii) a charge of $131
million ($131 million after-tax, or $0.45 per diluted share),
related to a Venezuela currency devaluation. Refer to Notes 2 and 7
to Praxair's 2014 Annual Report for additional information.
|
|
|
|
|
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 2015 third quarter
cost reduction program and pension settlement, 2015 second quarter cost
reduction program and other charges, 2014 fourth quarter pension
settlement, bond redemption and loss on Venezuela currency devaluation,
2013 fourth quarter bond redemption and the income tax benefit related
to the realignment of Praxair's Italian legal structure, the 2013 third
quarter pension settlement, and the 2013 first quarter loss on Venezuela
currency devaluation.
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
|
Q3
|
|
Q2
|
|
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
|
|
$
|
676
|
|
$
|
707
|
|
$
|
508
|
|
$
|
772
|
|
$
|
713
|
|
$
|
847
|
|
$
|
536
|
|
$
|
964
|
|
$
|
904
|
|
$
|
577
|
|
$
|
472
|
Less: capital expenditures
|
|
|
(405)
|
|
|
(352)
|
|
|
(397)
|
|
|
(482)
|
|
|
(430)
|
|
|
(384)
|
|
|
(393)
|
|
|
(516)
|
|
|
(516)
|
|
|
(522)
|
|
|
(466)
|
Free Cash Flow
|
|
$
|
271
|
|
$
|
355
|
|
$
|
111
|
|
$
|
290
|
|
$
|
283
|
|
$
|
463
|
|
$
|
143
|
|
$
|
448
|
|
$
|
388
|
|
$
|
55
|
|
$
|
6
|
|
|
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
|
|
$
|
9,517
|
|
$
|
9,347
|
|
$
|
9,396
|
|
$
|
9,258
|
|
$
|
9,121
|
|
$
|
9,165
|
|
$
|
9,270
|
|
$
|
8,811
|
|
$
|
9,026
|
|
$
|
9,106
|
|
$
|
8,676
|
Less: cash and cash equivalents
|
|
|
(136)
|
|
|
(136)
|
|
|
(117)
|
|
|
(126)
|
|
|
(168)
|
|
|
(173)
|
|
|
(144)
|
|
|
(138)
|
|
|
(134)
|
|
|
(102)
|
|
|
(113)
|
Net debt
|
|
|
9,381
|
|
|
9,211
|
|
|
9,279
|
|
|
9,132
|
|
|
8,953
|
|
|
8,992
|
|
|
9,126
|
|
|
8,673
|
|
|
8,892
|
|
|
9,004
|
|
|
8,563
|
Equity and redeemable noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
169
|
|
|
175
|
|
|
170
|
|
|
176
|
|
|
190
|
|
|
194
|
|
|
195
|
|
|
307
|
|
|
290
|
|
|
259
|
|
|
255
|
Praxair, Inc. shareholders' equity
|
|
|
4,264
|
|
|
4,964
|
|
|
5,018
|
|
|
5,623
|
|
|
6,552
|
|
|
6,911
|
|
|
6,600
|
|
|
6,609
|
|
|
6,210
|
|
|
5,928
|
|
|
6,169
|
Noncontrolling interests
|
|
|
380
|
|
|
380
|
|
|
375
|
|
|
387
|
|
|
388
|
|
|
395
|
|
|
398
|
|
|
394
|
|
|
365
|
|
|
357
|
|
|
357
|
Total equity and redeemable noncontrolling interests
|
|
|
4,813
|
|
|
5,519
|
|
|
5,563
|
|
|
6,186
|
|
|
7,130
|
|
|
7,500
|
|
|
7,193
|
|
|
7,310
|
|
|
6,865
|
|
|
6,544
|
|
|
6,781
|
Capital
|
|
$
|
14,194
|
|
$
|
14,730
|
|
$
|
14,842
|
|
$
|
15,318
|
|
$
|
16,083
|
|
$
|
16,492
|
|
$
|
16,319
|
|
$
|
15,983
|
|
$
|
15,757
|
|
$
|
15,548
|
|
$
|
15,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-to-capital
|
|
|
66.1%
|
|
|
62.5%
|
|
|
62.5%
|
|
|
59.6%
|
|
|
55.7%
|
|
|
54.5%
|
|
|
55.9%
|
|
|
54.3%
|
|
|
56.4%
|
|
|
57.9%
|
|
|
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)
|
|
$
|
620
|
|
$
|
626
|
|
$
|
623
|
|
$
|
663
|
|
$
|
711
|
|
$
|
697
|
|
$
|
675
|
|
$
|
690
|
|
$
|
679
|
|
$
|
665
|
|
$
|
623
|
Less: adjusted income taxes (a)
|
|
|
(164)
|
|
|
(164)
|
|
|
(162)
|
|
|
(161)
|
|
|
(187)
|
|
|
(183)
|
|
|
(176)
|
|
|
(182)
|
|
|
(178)
|
|
|
(174)
|
|
|
(164)
|
Less: tax benefit on adjusted interest expense (a)
|
|
|
(10)
|
|
|
(11)
|
|
|
(12)
|
|
|
(12)
|
|
|
(13)
|
|
|
(12)
|
|
|
(13)
|
|
|
(11)
|
|
|
(11)
|
|
|
(11)
|
|
|
(11)
|
Add: income from equity investments
|
|
|
10
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
11
|
|
|
10
|
|
|
9
|
|
|
9
|
|
|
8
|
|
|
11
|
|
|
10
|
Adjusted net operating profit after-tax (NOPAT)
|
|
$
|
456
|
|
$
|
461
|
|
$
|
460
|
|
$
|
502
|
|
$
|
522
|
|
$
|
512
|
|
$
|
495
|
|
$
|
506
|
|
$
|
498
|
|
$
|
491
|
|
$
|
458
|
4-quarter trailing adjusted NOPAT
|
|
$
|
1,879
|
|
$
|
1,945
|
|
$
|
1,996
|
|
$
|
2,031
|
|
$
|
2,035
|
|
$
|
2,011
|
|
$
|
1,990
|
|
$
|
1,953
|
|
$
|
1,900
|
|
$
|
1,859
|
|
$
|
1,836
|
|
|
Ending capital (see above)
|
|
$
|
14,194
|
|
$
|
14,730
|
|
$
|
14,842
|
|
$
|
15,318
|
|
$
|
16,083
|
|
$
|
16,492
|
|
$
|
16,319
|
|
$
|
15,983
|
|
$
|
15,757
|
|
$
|
15,548
|
|
$
|
15,344
|
5-quarter average ending capital
|
|
$
|
15,033
|
|
$
|
15,493
|
|
$
|
15,811
|
|
$
|
16,039
|
|
$
|
16,127
|
|
$
|
16,020
|
|
$
|
15,790
|
|
$
|
15,302
|
|
$
|
14,829
|
|
$
|
14,281
|
|
$
|
13,821
|
|
|
After-tax ROC (4-quarter trailing NOPAT / 5-quarter average
capital)
|
|
|
12.5%
|
|
|
12.6%
|
|
|
12.6%
|
|
|
12.7%
|
|
|
12.6%
|
|
|
12.6%
|
|
|
12.6%
|
|
|
12.8%
|
|
|
12.8%
|
|
|
13.0%
|
|
|
13.3%
|
|
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)
|
|
$
|
419
|
|
$
|
420
|
|
$
|
416
|
|
$
|
460
|
|
$
|
477
|
|
$
|
467
|
|
$
|
448
|
|
$
|
462
|
|
$
|
451
|
|
$
|
445
|
|
$
|
414
|
4-quarter trailing adjusted net income - Praxair, Inc.
|
|
$
|
1,715
|
|
$
|
1,773
|
|
$
|
1,820
|
|
$
|
1,852
|
|
$
|
1,854
|
|
$
|
1,828
|
|
$
|
1,806
|
|
$
|
1,772
|
|
$
|
1,724
|
|
$
|
1,692
|
|
$
|
1,676
|
|
Ending Praxair, Inc. shareholders' equity
|
|
$
|
4,264
|
|
$
|
4,964
|
|
$
|
5,018
|
|
$
|
5,623
|
|
$
|
6,552
|
|
$
|
6,911
|
|
$
|
6,600
|
|
$
|
6,609
|
|
$
|
6,210
|
|
$
|
5,928
|
|
$
|
6,169
|
5-quarter average Praxair shareholders' equity
|
|
$
|
5,284
|
|
$
|
5,814
|
|
$
|
6,141
|
|
$
|
6,459
|
|
$
|
6,576
|
|
$
|
6,452
|
|
$
|
6,303
|
|
$
|
6,196
|
|
$
|
6,077
|
|
$
|
5,958
|
|
$
|
5,961
|
|
ROE (4-quarter trailing adjusted net income - Praxair, Inc. /
5-quarter average Praxair shareholders' equity)
|
|
|
32.5%
|
|
|
30.5%
|
|
|
29.6%
|
|
|
28.7%
|
|
|
28.2%
|
|
|
28.3%
|
|
|
28.7%
|
|
|
28.6%
|
|
|
28.4%
|
|
|
28.4%
|
|
|
28.1%
|
|
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)
|
|
$
|
419
|
|
$
|
420
|
|
$
|
416
|
|
$
|
460
|
|
$
|
477
|
|
$
|
467
|
|
$
|
448
|
|
$
|
462
|
|
$
|
451
|
|
$
|
445
|
|
$
|
414
|
Add: adjusted noncontrolling interests (a)
|
|
|
12
|
|
|
12
|
|
|
12
|
|
|
11
|
|
|
13
|
|
|
14
|
|
|
14
|
|
|
17
|
|
|
17
|
|
|
16
|
|
|
15
|
Add: adjusted interest expense - net (a)
|
|
|
35
|
|
|
40
|
|
|
44
|
|
|
43
|
|
|
45
|
|
|
43
|
|
|
46
|
|
|
38
|
|
|
41
|
|
|
41
|
|
|
40
|
Add: adjusted income taxes (a)
|
|
|
164
|
|
|
164
|
|
|
162
|
|
|
161
|
|
|
187
|
|
|
183
|
|
|
176
|
|
|
182
|
|
|
178
|
|
|
174
|
|
|
164
|
Add: depreciation and amortization
|
|
|
276
|
|
|
278
|
|
|
277
|
|
|
291
|
|
|
301
|
|
|
293
|
|
|
285
|
|
|
287
|
|
|
281
|
|
|
275
|
|
|
266
|
Adjusted EBITDA
|
|
$
|
906
|
|
$
|
914
|
|
$
|
911
|
|
$
|
966
|
|
$
|
1,023
|
|
$
|
1,000
|
|
$
|
969
|
|
$
|
986
|
|
$
|
968
|
|
$
|
951
|
|
$
|
899
|
|
Reported sales
|
|
$
|
2,686
|
|
$
|
2,738
|
|
$
|
2,757
|
|
$
|
2,990
|
|
$
|
3,144
|
|
$
|
3,113
|
|
$
|
3,026
|
|
$
|
3,010
|
|
$
|
3,013
|
|
$
|
3,014
|
|
$
|
2,888
|
Adjusted EBITDA margin
|
|
|
33.7%
|
|
|
33.4%
|
|
|
33.0%
|
|
|
32.3%
|
|
|
32.5%
|
|
|
32.1%
|
|
|
32.0%
|
|
|
32.8%
|
|
|
32.1%
|
|
|
31.6%
|
|
|
31.1%
|
|
Ending net debt (see above)
|
|
$
|
9,381
|
|
$
|
9,211
|
|
$
|
9,279
|
|
$
|
9,132
|
|
$
|
8,953
|
|
$
|
8,992
|
|
$
|
9,126
|
|
$
|
8,673
|
|
$
|
8,892
|
|
$
|
9,004
|
|
$
|
8,563
|
5-quarter average net debt
|
|
$
|
9,191
|
|
$
|
9,113
|
|
$
|
9,096
|
|
$
|
8,975
|
|
$
|
8,927
|
|
$
|
8,937
|
|
$
|
8,852
|
|
$
|
8,467
|
|
$
|
8,138
|
|
$
|
7,738
|
|
$
|
7,287
|
4-quarter trailing adjusted EBITDA
|
|
$
|
3,697
|
|
$
|
3,814
|
|
$
|
3,900
|
|
$
|
3,958
|
|
$
|
3,978
|
|
$
|
3,923
|
|
$
|
3,874
|
|
$
|
3,804
|
|
$
|
3,697
|
|
$
|
3,608
|
|
$
|
3,550
|
|
Debt-to-adjusted EBITDA ratio (5-quarter average net debt /
4-quarter trailing adjusted EBITDA)
|
|
|
2.5
|
|
|
2.4
|
|
|
2.3
|
|
|
2.3
|
|
|
2.2
|
|
|
2.3
|
|
|
2.3
|
|
|
2.2
|
|
|
2.2
|
|
|
2.1
|
|
|
2.1
|
|
|
|
|
|
(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 2014 and
2013; and presents the percentage changes in Diluted EPS Guidance
for the fourth quarter and full year 2015 as compared to 2014
Diluted EPS on both a GAAP and adjusted basis. The adjusted
percentages are based on Adjusted diluted EPS amounts, excluding
estimated currency impacts
|
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-date September 30,
|
|
Third Quarter
|
|
Second Quarter
|
|
Year
|
|
Fourth Quarter
|
|
Year
|
|
Fourth Quarter
|
|
Third Quarter
|
|
First
Quarter
|
|
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
2013
|
|
|
2013
|
|
Adjusted Operating Profit and Operating
Profit Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating profit
|
|
$
|
1,697
|
|
$
|
594
|
|
$
|
480
|
|
$
|
2,608
|
|
$
|
525
|
|
$
|
2,625
|
|
$
|
690
|
|
$
|
670
|
|
$
|
600
|
|
Add: Cost reduction program and other charges
|
|
|
165
|
|
|
19
|
|
|
146
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Add: Pension settlement charge
|
|
|
7
|
|
|
7
|
|
|
-
|
|
|
7
|
|
|
7
|
|
|
9
|
|
|
-
|
|
|
9
|
|
|
-
|
|
Add: Venezuela currency devaluation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
131
|
|
|
131
|
|
|
23
|
|
|
-
|
|
|
-
|
|
|
23
|
|
Total adjustments
|
|
|
172
|
|
|
26
|
|
|
146
|
|
|
138
|
|
|
138
|
|
|
32
|
|
|
-
|
|
|
9
|
|
|
23
|
|
Adjusted operating profit
|
|
$
|
1,869
|
|
$
|
620
|
|
$
|
626
|
|
$
|
2,746
|
|
$
|
663
|
|
$
|
2,657
|
|
$
|
690
|
|
$
|
679
|
|
$
|
623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported percentage change
|
|
|
-19%
|
|
|
-16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted percentage change
|
|
|
-10%
|
|
|
-13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported sales
|
|
$
|
8,181
|
|
$
|
2,686
|
|
$
|
2,738
|
|
$
|
12,273
|
|
$
|
2,990
|
|
$
|
11,925
|
|
$
|
3,010
|
|
$
|
3,013
|
|
$
|
2,888
|
|
Adjusted operating profit margin
|
|
|
22.8%
|
|
|
23.1%
|
|
|
22.9%
|
|
|
22.4%
|
|
|
22.2%
|
|
|
22.3%
|
|
|
22.9%
|
|
|
22.5%
|
|
|
21.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Interest Expense - net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported interest expense - net
|
|
$
|
119
|
|
$
|
35
|
|
$
|
40
|
|
$
|
213
|
|
$
|
79
|
|
$
|
178
|
|
$
|
56
|
|
$
|
41
|
|
$
|
40
|
|
Less: Bond redemption
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(36)
|
|
|
(36)
|
|
|
(18)
|
|
|
(18)
|
|
|
-
|
|
|
-
|
|
Adjusted interest expense - net
|
|
$
|
119
|
|
$
|
35
|
|
$
|
40
|
|
$
|
177
|
|
$
|
43
|
|
$
|
160
|
|
$
|
38
|
|
$
|
41
|
|
$
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income taxes
|
|
$
|
449
|
|
$
|
156
|
|
$
|
131
|
|
$
|
691
|
|
$
|
145
|
|
$
|
649
|
|
$
|
136
|
|
$
|
175
|
|
$
|
164
|
|
Add: Cost reduction program and other charges
|
|
|
39
|
|
|
6
|
|
|
33
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Add: Bond redemption
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
14
|
|
|
14
|
|
|
6
|
|
|
6
|
|
|
-
|
|
|
-
|
|
Add: Income tax benefit
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
40
|
|
|
40
|
|
|
-
|
|
|
-
|
|
Add: Pension settlement charge
|
|
|
2
|
|
|
2
|
|
|
-
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
-
|
|
|
3
|
|
|
-
|
|
Total adjustments
|
|
|
41
|
|
|
8
|
|
|
33
|
|
|
16
|
|
|
16
|
|
|
49
|
|
|
46
|
|
|
3
|
|
|
-
|
|
Adjusted income taxes
|
|
$
|
490
|
|
$
|
164
|
|
$
|
164
|
|
$
|
707
|
|
$
|
161
|
|
$
|
698
|
|
$
|
182
|
|
$
|
178
|
|
$
|
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective Tax Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income before income taxes and equity investments
|
|
$
|
1,578
|
|
$
|
559
|
|
$
|
440
|
|
$
|
2,395
|
|
$
|
446
|
|
$
|
2,447
|
|
$
|
634
|
|
$
|
629
|
|
$
|
560
|
|
Add: Cost reduction program and other charges
|
|
|
165
|
|
|
19
|
|
|
146
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Add: Bond redemption
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
36
|
|
|
36
|
|
|
18
|
|
|
18
|
|
|
-
|
|
|
-
|
|
Add: Pension settlement charge
|
|
|
7
|
|
|
7
|
|
|
-
|
|
|
7
|
|
|
7
|
|
|
9
|
|
|
-
|
|
|
9
|
|
|
-
|
|
Add: Venezuela currency devaluation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
131
|
|
|
131
|
|
|
23
|
|
|
-
|
|
|
-
|
|
|
23
|
|
Total adjustments
|
|
|
172
|
|
|
26
|
|
|
146
|
|
|
174
|
|
|
174
|
|
|
50
|
|
|
18
|
|
|
9
|
|
|
23
|
|
Adjusted income before income taxes and equity investments
|
|
$
|
1,750
|
|
$
|
585
|
|
$
|
586
|
|
$
|
2,569
|
|
$
|
620
|
|
$
|
2,497
|
|
$
|
652
|
|
$
|
638
|
|
$
|
583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income taxes (above)
|
|
$
|
490
|
|
$
|
164
|
|
$
|
164
|
|
$
|
707
|
|
$
|
161
|
|
$
|
698
|
|
$
|
182
|
|
$
|
178
|
|
$
|
164
|
|
Adjusted effective tax rate
|
|
|
28%
|
|
|
28%
|
|
|
28%
|
|
|
28%
|
|
|
26%
|
|
|
28%
|
|
|
28%
|
|
|
28%
|
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported noncontrolling interests
|
|
$
|
35
|
|
$
|
12
|
|
$
|
11
|
|
$
|
52
|
|
$
|
11
|
|
$
|
81
|
|
$
|
33
|
|
$
|
17
|
|
$
|
15
|
|
Add: Cost reduction program and other charges
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Less: Income tax benefit
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(16)
|
|
|
(16)
|
|
|
-
|
|
|
-
|
|
Total adjustments
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
(16)
|
|
|
(16)
|
|
|
-
|
|
|
-
|
|
Adjusted noncontrolling interests
|
|
$
|
36
|
|
$
|
12
|
|
$
|
12
|
|
$
|
52
|
|
$
|
11
|
|
$
|
65
|
|
$
|
17
|
|
$
|
17
|
|
$
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income - Praxair, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income - Praxair, Inc.
|
|
$
|
1,125
|
|
$
|
401
|
|
$
|
308
|
|
$
|
1,694
|
|
$
|
302
|
|
$
|
1,755
|
|
$
|
474
|
|
$
|
445
|
|
$
|
391
|
|
Add: Cost reduction program and other charges
|
|
|
125
|
|
|
13
|
|
|
112
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Add: Bond redemption
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
22
|
|
|
22
|
|
|
12
|
|
|
12
|
|
|
-
|
|
|
-
|
|
Less: Income tax benefit
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(24)
|
|
|
(24)
|
|
|
-
|
|
|
-
|
|
Add: Pension settlement charge
|
|
|
5
|
|
|
5
|
|
|
-
|
|
|
5
|
|
|
5
|
|
|
6
|
|
|
-
|
|
|
6
|
|
|
-
|
|
Add: Venezuela currency devaluation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
131
|
|
|
131
|
|
|
23
|
|
|
-
|
|
|
-
|
|
|
23
|
|
Total adjustments
|
|
|
130
|
|
|
18
|
|
|
112
|
|
|
158
|
|
|
158
|
|
|
17
|
|
|
(12)
|
|
|
6
|
|
|
23
|
|
Adjusted net income - Praxair, Inc.
|
|
$
|
1,255
|
|
$
|
419
|
|
$
|
420
|
|
$
|
1,852
|
|
$
|
460
|
|
$
|
1,772
|
|
$
|
462
|
|
$
|
451
|
|
$
|
414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported percentage change
|
|
|
-19%
|
|
|
-16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted percentage change
|
|
|
-10%
|
|
|
-12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported diluted EPS
|
|
$
|
3.88
|
|
$
|
1.40
|
|
$
|
1.06
|
|
$
|
5.73
|
|
$
|
1.03
|
|
$
|
5.87
|
|
$
|
1.59
|
|
$
|
1.49
|
|
$
|
1.30
|
|
Add: Cost reduction program and other charges
|
|
|
0.43
|
|
|
0.04
|
|
|
0.39
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Add: Bond redemption
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.07
|
|
|
0.07
|
|
|
0.04
|
|
|
0.04
|
|
|
-
|
|
|
-
|
|
Less: Income tax benefit
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.08)
|
|
|
(0.08)
|
|
|
-
|
|
|
-
|
|
Add: Pension settlement charge
|
|
|
0.02
|
|
|
0.02
|
|
|
-
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
-
|
|
|
0.02
|
|
|
-
|
|
Add: Venezuela currency devaluation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.45
|
|
|
0.45
|
|
|
0.08
|
|
|
-
|
|
|
-
|
|
|
0.08
|
|
Total adjustments
|
|
|
0.45
|
|
|
0.06
|
|
|
0.39
|
|
|
0.54
|
|
|
0.54
|
|
|
0.06
|
|
|
(0.04)
|
|
|
0.02
|
|
|
0.08
|
|
Adjusted diluted EPS
|
|
$
|
4.33
|
|
$
|
1.46
|
|
$
|
1.45
|
|
$
|
6.27
|
|
$
|
1.57
|
|
$
|
5.93
|
|
$
|
1.55
|
|
$
|
1.51
|
|
$
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Income Taxes and Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid
|
|
|
|
|
|
|
|
$
|
606
|
|
|
|
$
|
532
|
|
|
|
|
|
|
|
Interest paid, net of interest capitalized and excluding bond
redemption
|
|
|
|
|
|
|
|
$
|
174
|
|
|
|
$
|
166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter and Full-Year 2015 Diluted
EPS Guidance*
|
|
|
Fourth Quarter 2015
|
|
Full Year 2015
|
|
|
Low End
|
|
High End
|
|
Low End
|
|
High End
|
|
|
|
|
|
|
|
|
|
2015 adjusted diluted EPS guidance
|
|
$
|
1.45
|
|
$
|
1.52
|
|
$
|
5.78
|
|
$
|
5.85
|
2014 adjusted diluted EPS (see above for full year amounts)
|
|
$
|
1.57
|
|
$
|
1.57
|
|
$
|
6.27
|
|
$
|
6.27
|
|
|
|
|
|
|
|
|
|
Adjusted percentage change
|
|
|
-8%
|
|
|
-3%
|
|
|
-8%
|
|
|
-7%
|
Adjusted percentage changes, excluding estimated currency impact
|
|
|
3%
|
|
|
8%
|
|
|
3%
|
|
|
4%
|
|
|
|
|
|
|
|
|
|
* Excludes cost reduction charges recorded in the second and third
quarter and the pension settlement charge recorded in the third quarter.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151029005289/en/ Copyright Business Wire 2015
Source: Business Wire
(October 29, 2015 - 6:01 AM EDT)
News by QuoteMedia
www.quotemedia.com
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