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Press release from Business Wire

Praxair Reports First-Quarter 2013 Results

<ul> <li class='bwlistitemmargb'> First-quarter sales of $2.9 billion; adjusted diluted EPS of $1.38* </li> <li class='bwlistitemmargb'> Completed acquisition of NuCO<sub>2</sub> micro-bulk carbon dioxide business </li> <li class='bwlistitemmargb'> Announced signing of North West Redwater energy project, supply of 2,000 tons per day of oxygen in Alberta; project development activity remains solid </li> <li class='bwlistitemmargb'> Adjusted diluted EPS guidance: 2013 full-year $5.90 to $6.05* and 2Q13 $1.45 to $1.50 </li> </ul>

Wednesday, April 24, 2013

Praxair Reports First-Quarter 2013 Results

06:05 EDT Wednesday, April 24, 2013

DANBURY, Conn. (Business Wire) -- Praxair, Inc. (NYSE: PX) reported first-quarter net income and diluted earnings per share of $391 million and $1.30, respectively. These results include the impact of a $23 million pre-tax charge, or 8 cents of diluted earnings per share, related to currency devaluation in Venezuela. Excluding this charge, adjusted net income and earnings per share were $414 million and $1.38, respectively.*

Sales in the first quarter were $2,888 million, an increase of 2% compared to the prior-year quarter. On a comparable basis, sales grew 4%, excluding foreign currency, cost pass-through and fewer working days. Sales growth was driven by Asia and South America. Growth moderated in North America and weakened further in Europe.

Reported operating profit in the first quarter was $600 million. Adjusted operating profit was $623 million, 1% below the prior-year quarter. Excluding currency and day count effects, adjusted operating profit rose modestly driven by price, productivity gains and acquisitions. Adjusted operating profit as a percentage of sales was 21.6%.*

First-quarter cash flow from operations was $472 million and capital spending was $466 million, primarily for new production plants under long-term contracts with customers. Acquisition expenditures were $1,098 million, related primarily to the acquisition of NuCO2. The company paid dividends of $178 million and repurchased $117 million of stock, net of issuances. During the quarter, the company issued $400 million of 3-year notes at 0.75%, $500 million of 5-year notes at 1.2% and $500 million of 10-year notes at 2.7%. The after-tax return-on-capital and return on equity for the quarter were 13.3% and 28.1%, respectively.*

Commenting on the financial results and business outlook, Chairman and Chief Executive Officer Steve Angel said, “During the first quarter, Praxair saw varied growth rates across our geographic segments. Our Asia business grew sales at double-digit rates in China and Korea, due primarily to project start-ups. Sales in Brazil improved in March driven by manufacturing and construction. North American sales reflect solid underlying fundamentals with some deceleration of the growth rate.

For the balance of the year, we expect base volumes to grow modestly given the current uncertainty in the macro-economic environment. Additionally, we will be starting up several large hydrogen projects as well as a number of air separation plants that will contribute to earnings growth.”

For the second quarter of 2013, Praxair expects diluted earnings per share in the range of $1.45 to $1.50.

For the full year of 2013, Praxair expects sales in the area of $12 billion. The company expects adjusted diluted earnings per share to be in the range of $5.90 to $6.05. Full-year capital expenditures are expected to be in the range of $1.8 to $2.0 billion, and the adjusted effective tax rate is forecasted to remain at about 28%.*

Following is additional detail on first-quarter 2013 results by segment.

In North America, first-quarter sales were $1,457 million, 4% above the prior-year quarter. Acquisitions of packaged gas distributors and NuCO2, a United States micro-bulk carbon dioxide provider, contributed 3% growth. Base business sales were steady as higher pricing was offset by lower volumes, primarily due to fewer selling days in the quarter. Total sales growth was strongest to energy, manufacturing and food & beverage customers. Operating profit was $358 million.

In Europe, first-quarter sales were $370 million, down 2% versus the respective 2012 period. Sales were negatively impacted by lower industrial economic activity resulting in lower packaged gases volumes in Spain and Italy. Operating profit was $62 million in the quarter, as compared to $68 million in the prior-year quarter, primarily due to lower volumes.

In South America, first-quarter sales were $531 million. Sales grew 3% from the prior-year quarter, excluding a 10% negative currency impact, primarily due to higher volumes and price. Operating profit was $114 million as compared to $115 million in the prior-year period due to higher volumes and pricing offset by negative currency translation.

Sales in Asia were $367 million in the quarter, up 10% from the prior year driven by volume growth in India, China, Korea and Thailand. Sales growth came primarily from metals and chemicals customers. Operating profit was $63 million, as compared to $57 million in the prior year, due primarily to higher volumes.

Praxair Surface Technologies had first-quarter sales of $163 million as compared to $169 million in the prior-year quarter. Sales decreased 4%, primarily from lower sales of industrial and military aviation coatings. Operating profit was $26 million as higher price and productivity benefits offset the impact of weaker volumes.

About Praxair

Praxair, Inc. (NYSE: PX), is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2012 sales of $11 billion. 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, metals and others. More information on Praxair, Inc. is available on the Internet at www.praxair.com.

*See the attachments for calculations of non-GAAP measures. First-quarter 2013 results are adjusted to exclude a charge of $23 million, or 8 cents per diluted share, related to the Venezuela currency devaluation. Guidance for adjusted diluted earnings per share for the full year 2013 excludes the Venezuelan currency devaluation and the impact of any pension settlement charges expected to be recorded in the third quarter.

Attachments: Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information, Quarterly Financial Summary, and Appendix: Non-GAAP Measures.

A teleconference on Praxair's first-quarter results is being held this morning, April 24, at 11:00 a.m. Eastern Time. The number is (617) 213-8831 -- Passcode: 19538377. The call also is available as a web cast at www.praxair.com/investors. Materials to be used in the teleconference are also available.

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
NON-GAAP RECONCILIATIONS
(UNAUDITED)
 
The following Non-GAAP measures 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.
 
(Millions of dollars, except per share amounts)
        Operating Profit       Income Taxes      

Net Income -

Praxair, Inc.

    Diluted EPS
2013     2012 2013     2012 2013     2012 2013     2012
 

Quarter Ended March 31,

Reported GAAP amounts $ 600 $ 627 $ 164 $ 165 $ 391 $ 419 $ 1.30 $ 1.38
Non-GAAP adjustments:
Venezuela currency devaluation (a) $ 23     $ - $ -     $ - $ 23     $ - $ 0.08     $ -
Total adjustments   23       -   -       -   23       -   0.08       -
Adjusted amounts $ 623     $ 627 $ 164     $ 165 $ 414     $ 419 $ 1.38     $ 1.38
 

(a)

 

Charge in the first quarter of 2013 related to the Venezuela currency devaluation.

 

PRAXAIR, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Millions of dollars, except per share data)
(UNAUDITED)
 
        Quarter Ended
March 31,
2013       2012
 
SALES $ 2,888 $ 2,840
Cost of sales 1,638 1,616
Selling, general and administrative 337 335
Depreciation and amortization 266 252
Research and development 24 24
Venezuela currency devaluation (a) 23 -
Other income (expense) - net   -     14  
OPERATING PROFIT 600 627
Interest expense - net   40     37  
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS 560 590
Income taxes   164     165  
INCOME BEFORE EQUITY INVESTMENTS 396 425
Income from equity investments   10     7  
NET INCOME (INCLUDING NONCONTROLLING INTERESTS) 406 432
Less: noncontrolling interests   (15 )   (13 )
NET INCOME - PRAXAIR, INC. $ 391   $ 419  
 
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
 
Basic earnings per share $ 1.32 $ 1.40
 
Diluted earnings per share $ 1.30 $ 1.38
 
Cash dividends $ 0.60 $ 0.55
 
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic shares outstanding (000's) 296,604 299,077
Diluted shares outstanding (000's) 299,700 302,876
 
(a)   The 2013 first quarter includes a charge of $23 million ($23 million after-tax, or $0.08 per diluted share), related to the Venezuela currency devaluation. See appendix for non-GAAP measures which exclude the impact of this charge.

 
PRAXAIR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions of dollars)
(UNAUDITED)
       
March 31, December 31,
2013 2012
ASSETS        
Cash and cash equivalents $ 113 $ 157
Accounts receivable - net 1,994 1,834
Inventories 477 476
Prepaid and other current assets   345   325
TOTAL CURRENT ASSETS 2,929 2,792
 
Property, plant and equipment - net 11,841 11,453
Goodwill 3,098 2,507
Other intangibles - net 544 173
Other long-term assets   1,174   1,165
TOTAL ASSETS $ 19,586 $ 18,090
LIABILITIES AND EQUITY
Accounts payable $ 907 $ 928
Short-term debt 579 638
Current portion of long-term debt 325 39
Other current liabilities   875   874
TOTAL CURRENT LIABILITIES 2,686 2,479
Long-term debt 7,772 6,685
Other long-term liabilities   2,347   2,253
TOTAL LIABILITIES 12,805 11,417
 
REDEEMABLE NONCONTROLLING INTERESTS 255 252
 
EQUITY
Praxair, Inc. shareholders' equity 6,169 6,064
Noncontrolling interests   357   357
TOTAL EQUITY   6,526   6,421
TOTAL LIABILITIES AND EQUITY $ 19,586 $ 18,090
 

 
PRAXAIR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of dollars)
(UNAUDITED)
 
        Quarter Ended
March 31,
2013       2012
OPERATIONS
Net income - Praxair, Inc. $ 391 $ 419
Noncontrolling interests   15     13  
Net income (including noncontrolling interests) 406 432
 
Adjustments to reconcile net income to net cash provided
by operating activities:
Venezuela currency devaluation 23 -
Deferred income taxes 1 69
Depreciation and amortization 266 252
Accounts receivable (161 ) (143 )
Inventory (16 ) (31 )
Payables and accruals - (95 )
Pension contributions (5 ) (106 )
Other   (42 )   24  
Net cash provided by operating activities   472     402  
INVESTING
Capital expenditures (466 ) (483 )
Acquisitions, net of cash acquired (1,098 ) (12 )
Divestitures and asset sales   31     64  
Net cash used for investing activities   (1,533 )   (431 )
 
FINANCING
Debt increase (decrease) - net 1,316 278
Issuances of common stock 33 73
Purchases of common stock (150 ) (175 )
Cash dividends - Praxair, Inc. shareholders (178 ) (164 )
Excess tax benefit on stock option exercises 14 32
Noncontrolling interest transactions and other   (5 )   -  
Net cash provided by (used for) financing activities 1,030 44
 
Effect of exchange rate changes on cash and cash equivalents   (13 )   2  
 
Change in cash and cash equivalents (44 ) 17
Cash and cash equivalents, beginning-of-period   157     90  
 
Cash and cash equivalents, end-of-period $ 113   $ 107  
 

 

PRAXAIR, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Millions of dollars)

(UNAUDITED)

 
        Quarter Ended
March 31,
2013       2012
SALES
North America $ 1,457 $ 1,398
Europe 370 377
South America 531 562
Asia 367 334
Surface Technologies   163     169
Total sales $ 2,888   $ 2,840
 
OPERATING PROFIT
North America $ 358 $ 361
Europe 62 68
South America 114 115
Asia 63 57
Surface Technologies   26     26
Segment operating profit 623 627
Venezuela currency devaluation   (23 )   -
Total operating profit $ 600   $ 627
 

 
PRAXAIR, INC. AND SUBSIDIARIES
QUARTERLY FINANCIAL SUMMARY
(Millions of dollars, except per share data)
(UNAUDITED)
 
        2013       2012
Q1 (b) Q4     Q3 (b)     Q2     Q1
FROM THE INCOME STATEMENT
Sales $ 2,888 $ 2,799 $ 2,774 $ 2,811 $ 2,840
Cost of sales 1,638 1,583 1,595 1,602 1,616
Selling, general and administrative 337 319 306 310 335
Depreciation and amortization 266 254 248 247 252
Research and development 24 25 24 25 24
Venezuela currency devaluation and other charges 23 - 65 - -
Other income (expenses) - net   -     (2 )       22         9         14  
Operating profit 600 616 558 636 627
Interest expense - net 40 35 36 33 37
Income taxes 164 162 90 169 165
Income from equity investments   10     9         8         10         7  
Net income (including noncontrolling interests) 406 428 440 444 432
Less: noncontrolling interests   (15 )   (14 )       (10 )       (15 )       (13 )
Net income - Praxair, Inc. $ 391   $ 414       $ 430       $ 429       $ 419  
 
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Diluted earnings per share $ 1.30 $ 1.38 $ 1.43 $ 1.42 $ 1.38
Cash dividends per share $ 0.60 $ 0.55 $ 0.55 $ 0.55 $ 0.55
Diluted weighted average shares outstanding (000's) 299,700 300,224 301,731 302,492 302,876
 
FROM THE BALANCE SHEET
Net debt (a) $ 8,563 $ 7,205 $ 7,028 $ 6,891 $ 6,749
Capital (a) $ 15,344 $ 13,878 $ 13,617 $ 13,017 $ 13,248
Debt-to-capital ratio (a) 55.8 % 51.9 % 51.6 % 52.9 % 50.9 %
 
FROM THE STATEMENT OF CASH FLOWS
Cash flow from operations $ 472 $ 879 $ 746 $ 725 $ 402
Capital expenditures 466 586 547 564 483
Acquisitions 1,098 171 58 39 12
Cash dividends 178 163 164 164 164
 
OTHER INFORMATION
After-tax return on capital (ROC) (a) 13.3 % 13.9 % 14.2 % 14.5 % 14.6 %
Return on Praxair, Inc. shareholders' equity (ROE) (a) 28.1 % 28.9 % 29.2 % 29.0 % 28.4 %

Adjusted earnings before interest, taxes, depreciation and amortization

(adjusted EBITDA) (a)

$ 899 $ 879 $ 879 $ 893 $ 886
Debt-to-adjusted EBITDA ratio (a) 2.1 1.9 1.9 1.8 1.8
Number of employees 27,380 26,539 26,215 26,353 26,259
 
SEGMENT DATA
SALES
North America $ 1,457 $ 1,416 $ 1,391 $ 1,393 $ 1,398
Europe 370 363 352 382 377
South America 531 484 516 520 562
Asia 367 374 358 348 334
Surface Technologies   163     162         157         168         169  
Total sales $ 2,888   $ 2,799       $ 2,774       $ 2,811       $ 2,840  
OPERATING PROFIT
North America $ 358 $ 367 $ 374 $ 363 $ 361
Europe 62 60 60 68 68
South America 114 92 112 110 115
Asia 63 69 52 68 57
Surface Technologies   26     28         25         27         26  
Segment operating profit 623 616 623 636 627
Venezuela currency devaluation and other charges   (23 )   -         (65 )       -         -  
Total operating profit $ 600   $ 616       $ 558       $ 636       $ 627  
 
(a)   Non-GAAP measure, see Appendix.
 
(b) The first quarter 2013 includes a charge of $23 million ($23 million after-tax, or $0.08 per diluted share), related to the Venezuela currency devaluation. The third quarter 2012 includes: (i) a pre-tax charge of $56 million ($38 million after-tax and non-controlling interests, or $0.12 per diluted share) related to the 2012 cost reduction program; (ii) a pre-tax charge of $9 million ($6 million after-tax, or $0.02 per diluted share) related to pension settlement; and (iii) an income tax benefit of $55 million, or $0.18 per diluted share related to a loss on liquidated subsidiary as a result of the divestiture of the U.S. Homecare business.
 

 
PRAXAIR, INC. AND SUBSIDIARIES
APPENDIX
NON-GAAP MEASURES
(Millions of dollars, except per share data)
 
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 financing leverage, return on net assets employed 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 impact of the 2013 first quarter loss on Venezuela currency devaluation; and the 2012 third quarter cost reduction program, pension settlement charge, and an income tax benefit; and the 2011 fourth quarter gain on acquisition and cost reduction program which helps investors understand underlying performance on a comparable basis.
     
2013     2012     2011
Q1 Q4     Q3     Q2     Q1 Q4     Q3     Q2     Q1
 

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 $ 8,676 $ 7,362 $ 7,136 $ 6,995 $ 6,856 $ 6,562 $ 6,310 $ 6,119 $ 5,838
Less: cash and cash equivalents   (113) (157)     (108)     (104)     (107) (90)     (125)     (80)     (86)
Net debt 8,563 7,205 7,028 6,891 6,749 6,472 6,185 6,039 5,752
Equity and redeemable noncontrolling interests:
Redeemable noncontrolling interests 255 252 243 232 232 220 - - -
Praxair, Inc. shareholders' equity 6,169 6,064 6,015 5,615 5,940 5,488 5,753 6,400 6,165
Noncontrolling interests   357 357     331     279     327 309     368     370     372
Total equity and redeemable noncontrolling interests 6,781 6,673     6,589     6,126     6,499 6,017     6,121     6,770     6,537
Capital $ 15,344 $ 13,878 $ 13,617 $ 13,017 $ 13,248 $ 12,489 $ 12,306 $ 12,809 $ 12,289
 
Debt-to-capital   55.8% 51.9%     51.6%     52.9%     50.9% 51.8%     50.3%     47.1%     46.8%
 

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) $ 623 $ 616 $ 623 $ 636 $ 627 $ 619 $ 632 $ 627 $ 591
Less: adjusted income taxes (a) (164) (162) (164) (169) (165) (162) (166) (163) (156)
Less: tax benefit on interest expense (11) (10) (10) (9) (10) (11) (10) (10) (10)
Add: income from equity investments   10 9     8     10     7 7     13     11     9
Adjusted net operating profit after-tax (NOPAT) $ 458 $ 453 $ 457 $ 468 $ 459 $ 453 $ 469 $ 465 $ 434
4-quarter trailing adjusted NOPAT $ 1,836 $ 1,837 $ 1,837 $ 1,849 $ 1,846
 
Ending capital (see above) $ 15,344 $ 13,878 $ 13,617 $ 13,017 $ 13,248 $ 12,489 $ 12,306 $ 12,809 $ 12,289
5-quarter average ending capital $ 13,821 $ 13,250 $ 12,935 $ 12,774 $ 12,628
 
After-tax ROC (4-quarter trailing NOPAT / 5-quarter average capital) 13.3% 13.9%     14.2%     14.5%     14.6%                    
 

Return on Praxair, Inc. Shareholder's 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) $ 414 $ 414 $ 419 $ 429 $ 419 $ 414 $ 429 $ 425 $ 398
4-quarter trailing adjusted net income - Praxair, Inc. (a) $ 1,676 $ 1,681 $ 1,681 $ 1,691 $ 1,687
 
Ending Praxair, Inc. shareholders' equity $ 6,169 $ 6,064 $ 6,015 $ 5,615 $ 5,940 $ 5,488 $ 5,753 $ 6,400 $ 6,165
5-quarter average Praxair shareholders' equity $ 5,961 $ 5,824 $ 5,762 $ 5,839 $ 5,949
 
ROE (4-quarter trailing adjusted net income - Praxair, Inc. / 5-quarter average Praxair shareholders' equity) 28.1% 28.9%     29.2%     29.0%     28.4%                    
 

Adjusted EBITDA and Debt-to-Adjusted EBITDA Ratio - These measures are used by investors, financial analysts and management to assess a company's ability to meet it's financial obligations.

 
Adjusted net income - Praxair, Inc. (a) $ 414 $ 414 $ 419 $ 429 $ 419 $ 414 $ 429 $ 425 $ 398
 
Add: adjusted noncontrolling interests (a) 15 14 12 15 13 12 14 14 11
Add: interest expense - net 40 35 36 33 37 38 36 36 35
Add: adjusted income taxes (a) 164 162 164 169 165 162 166 163 156
Add: depreciation and amortization   266 254     248     247     252 249     256     254     244
Adjusted EBITDA $ 899 $ 879 $ 879 $ 893 $ 886 $ 875 $ 901 $ 892 $ 844
4-quarter trailing adjusted EBITDA $ 3,550 $ 3,537 $ 3,533 $ 3,555 $ 3,554
 
Ending net debt (see above) $ 8,563 $ 7,205 $ 7,028 $ 6,891 $ 6,749 $ 6,472 $ 6,185 $ 6,039 $ 5,752
5-quarter average net debt $ 7,287 $ 6,869 $ 6,665 $ 6,467 $ 6,239
 
Debt-to-adjusted EBITDA ratio (5-quarter average net debt / 4-quarter trailing adjusted EBITDA) 2.1 1.9     1.9     1.8     1.8                    
 

(a)   The following table presents adjusted amounts for Operating Profit and Operating Profit Margin, Income Taxes, Effective Tax Rate, Noncontrolling Interests, Net income - Praxair, Inc., and Diluted EPS for the First Quarter 2013, Third Quarter and full year 2012 and the Fourth Quarter 2011. Additionally, this table presents the percentage change in Diluted EPS Guidance for the full year 2013.
 
 
        First

Quarter

    Year       Third

Quarter

    Fourth

Quarter

2013 2012 2012 2011
Adjusted Operating Profit and Operating Profit Margin
Reported operating profit $ 600 $ 2,437 $ 558 $ 618
Add: Venezuela currency devaluation 23 - - -
Add: Pension settlement charge - 9 9 -
Add: Cost reduction program - 56 56 40
Less: Gain on acquisition   -     -     -     (39 )
Total adjustments   23     65     65     1  
Adjusted operating profit $ 623   $ 2,502   $ 623   $ 619  
 
Reported sales $ 2,888 $ 11,224 $ 2,774 $ 2,796
Adjusted operating profit margin 21.6 % 22.3 % 22.5 % 22.1 %
 
Adjusted Income Taxes
Reported income taxes $ 164 $ 586 $ 90 $ 156
Add: Venezuela currency devaluation - - - -
Add: Pension settlement charge - 3 3 -
Add: Income tax benefit - 55 55 -
Add: Cost reduction program - 16 16 9
Less: Gain on acquisition   -     -     -     (3 )
Total adjustments   -     74     74     6  
Adjusted income taxes $ 164   $ 660   $ 164   $ 162  
 
Adjusted Effective Tax Rate
Reported income before income taxes and equity investments $ 560 $ 2,296 $ 522 $ 580
Add: Venezuela currency devaluation 23 - - -
Add: Pension settlement charge - 9 9 -
Add: Cost reduction program - 56 56 40
Less: Gain on acquisition   -     -     -     (39 )
Total adjustments   23     65     65     1  
Adjusted income before income taxes and equity investments $ 583   $ 2,361   $ 587   $ 581  
 
Adjusted income taxes (above) $ 164 $ 660 $ 164 $ 162
Adjusted effective tax rate 28 % 28 % 28 % 28 %
 
Adjusted Noncontrolling Interest
Reported noncontrolling interest $ 15 $ 52 $ 10 $ 11
Add: Cost reduction program - 2 2 -
Add: Gain on acquisition -   -     -     1  
Total adjustments   -     2     2     1  
Adjusted noncontrolling interest $ 15   $ 54   $ 12   $ 12  
 
Adjusted Net Income - Praxair, Inc.
Reported net income - Praxair, Inc. $ 391 $ 1,692 $ 430 $ 420
Add: Venezuela currency devaluation 23 - - -
Add: Pension settlement charge - 6 6 -
Less: Income tax benefit - (55 ) (55 ) -
Add: Cost reduction program - 38 38 31
Less: Gain on acquisition   -     -     -     (37 )
Total adjustments   23     (11 )   (11 )   (6 )
Adjusted net income - Praxair, Inc. $ 414   $ 1,681   $ 419   $ 414  
 
Adjusted Diluted EPS
Reported diluted EPS $ 1.30 $ 5.61 $ 1.43 $ 1.38
Add: Venezuela currency devaluation 0.08 - - -
Add: Pension settlement charge - 0.02 0.02 -
Less: Income tax benefit - (0.18 ) (0.18 ) -
Add: Cost reduction program - 0.12 0.12 0.10
Less: Gain on acquisition   -     -     -     (0.12 )
Total adjustments   0.08     (0.04 )   (0.04 )   (0.02 )
Adjusted diluted EPS $ 1.38   $ 5.57   $ 1.39   $ 1.36  
 
Percentage Change in Adjusted Full Year 2013 Diluted EPS Guidance
 
        Full Year 2013
Low End       High End
     
Diluted EPS guidance $ 5.82 $ 5.97
Non-GAAP adjustments:
Add: Venezuela currency devaluation   0.08     0.08  
2013 adjusted diluted EPS $ 5.90 $ 6.05
 
2012 adjusted diluted EPS (see above) $ 5.57 $ 5.57
 
Percentage change from 2013 adjusted amounts 6 % 9 %
 

Praxair, Inc.
Investors:
Kelcey Hoyt, 203-837-2118
kelcey_hoyt@praxair.com
or
Media:
Jacqueline Hunt, 203-837-2663
jacqueline_hunt@praxair.com

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