We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
P10 Inc | NYSE:PX | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 8.08 | 0 | 12:00:00 |
Financial Highlights
Continued Progress on Merger with Linde AG
Praxair, Inc. (NYSE: PX) today reported second-quarter net income of $480 million and diluted earnings per share of $1.65. These results include transaction costs and other charges of $21 million after-tax, or 7 cents of diluted earnings per share, related to the proposed merger with Linde AG. Excluding these costs, adjusted net income was $501 million and diluted earnings per share was $1.72, up 19% and 18% respectively versus the prior year.
Praxair’s sales in the second quarter were $3,061 million, 8% above the prior-year quarter, driven by 2% higher pricing and 5% volume growth across all segments.
Second quarter reported operating profit was $689 million, 14% above the prior-year quarter. Excluding transaction costs and other charges, adjusted operating profit was $713 million, 15% above last year. Reported and adjusted operating profit margins were 22.5% and 23.3%, respectively, improving from 21.4% and 21.9% in the prior-year quarter. For the second quarter, EBITDA margin was 33.1% and adjusted EBITDA margin was 33.9%.
The company generated second-quarter operating cash flow of $790 million, 26% of sales. Capital expenditures were $351 million, dividends paid were $237 million and the company decreased net debt by $318 million.
Commenting on the financial results, Chairman and Chief Executive Officer Steve Angel said, “We continue to see positive economic activity, primarily in Asia and North America where overall business sentiment remains high. This led to strong sales growth across all geographic segments and supported a project backlog increase to $1.7 billion from new on-site wins in electronic and chemical end-markets.
“In the second quarter, we delivered record earnings per share of $1.72 which was 18% above prior year. Operating and EBITDA margins expanded to 23.3% and 33.9% respectively, as incremental volumes and price actions outpaced cost inflation. This profit growth coupled with prudent capital management improved return on capital 150 basis points to 13.6%.
“In addition to the strong performance, we made substantial progress on the merger with Linde. We achieved additional regulatory approvals and earlier this month, we announced an agreement to sell the majority of our European business in support of our efforts to gain EC approval.
“I am proud of the accomplishments and focus from Praxair employees worldwide and look forward to integrating our organization with Linde to create an even more valuable, high-performing company.”
Following is additional detail on second-quarter 2018 results by segment.
In North America, second-quarter sales were $1,594 million, 6% above the prior-year quarter, driven primarily by higher price attainment and strong volumes in the manufacturing, chemicals and food and beverage end-markets. Operating profit of $432 million grew 14% above the prior year due to higher volumes and price.
Europe sales grew 16% in the second quarter to $444 million or 5% excluding currency effects and higher cost pass-through. Underlying sales growth reflects increased business activity and higher pricing in Italy, Spain and Germany. Second-quarter operating profit of $87 million rose 18% from the prior-year period driven by higher volumes to all major end-markets and price.
In South America, second-quarter sales were $349 million, 4% above the prior-year quarter, excluding currency translation. Sales growth was driven by higher volumes to metals and healthcare end-markets. Operating profit was $56 million.
Sales in Asia were $502 million in the quarter, up 19% from the prior year. Excluding currency and higher cost pass-through, sales grew 14% from the prior year, driven by 3% price, project start-ups and higher organic volumes in China, Korea and India. Operating profit was $107 million, 34% above prior year, reflecting continued strong operating leverage from incremental volume, price and ongoing productivity initiatives.
Praxair Surface Technologies had second-quarter sales of $172 million, up 14% from prior-year quarter. Overall strong pricing and demand, including further ramping of EBPVD coating capacity serving the aviation market, drove higher sales and margin expansion. Operating profit of $31 million was up 24% versus prior-year quarter.
Praxair, Inc. is a leading industrial gas company in North and South America and one of the largest worldwide. With market capitalization of approximately $40 billion and 2017 sales of $11 billion, the company employs over 26,000 people globally and has been named to the Dow Jones® World Sustainability Index for 15 consecutive years. Praxair produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Our 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. For more information about the company, please visit our website at www.praxair.com.
Adjusted amounts, EBITDA, free cash flow and after-tax return on capital are non-GAAP measures. See the attachments for a summary of non-GAAP reconciliations and calculations of non-GAAP measures.
Effective January 1, 2018, Accounting Standards Update 2017-07 requires that pension costs, excluding service cost, be reported below the operating profit line in the income statement. Previously, these pension accounting impacts were included in the income statement primarily in selling, general and administrative expenses. Accordingly, such costs have been reclassified to “Net pension and OPEB cost (benefit), excluding service cost” in the income statement. Also, prior period full-year and quarterly results, including the income statement and segment operating profit, have been reclassified to conform to the current year presentation. There was no impact on previously reported net income or earnings per share.
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 second-quarter results is being held this morning, July 26, 2018 at 11:00 am Eastern Time. The number is (631) 485-4849 – Conference ID: 6768465. 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.
Forward-looking Statements
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 expected timing and likelihood of the completion of the contemplated business combination with Linde AG, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals that could reduce anticipated benefits or cause the parties to abandon the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the business combination agreement; the ability to successfully complete the proposed business combination, regulatory or other limitations imposed as a result of the proposed business combination; the success of the business following the proposed business combination; the ability to successfully integrate the Praxair and Linde businesses; the risk that the combined company may be unable to achieve expected synergies or that it may take longer or be more costly than expected to achieve those synergies; 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, including the impact of the U.S. Tax Cuts and Jobs Act of 2017; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; 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 GAAP or adjusted projections or estimates contained in the forward-looking statements.
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 latest Annual Report on Form 10-K filed with the SEC and in the proxy statement/prospectus included in the Registration Statement on Form S-4 (which Registration Statement was declared effective on August 14, 2017) filed by Linde plc 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 ProfitNet Income - Praxair, Inc.
Diluted EPS2018
2017
2018
2017 (b)
2018
2017
2018
2017
Quarter Ended June 30
Reported GAAP Amounts $ 3,061 $ 2,834 $ 689 $ 606 $ 480 $ 406 $ 1.65 $ 1.41 Transaction costs and other charges (a) — — 24 15 21 15 0.07 0.05 Adjusted amounts $ 3,061 $ 2,834 $ 713 $ 621 $ 501 $ 421 $ 1.72 $ 1.46Year To Date June 30
Reported GAAP Amounts $ 6,060 $ 5,562 $ 1,342 $ 1,173 $ 942 $ 795 $ 3.24 $ 2.76 Transaction costs (a) — — 43 21 39 21 0.13 0.07 Adjusted amounts $ 6,060 $ 5,562 $ 1,385 $ 1,194 $ 981 $ 816 $ 3.37 $ 2.83 (a) Charges primarily for transaction costs related to the potential Linde merger. (b) During the first quarter 2018, Praxair adopted accounting guidance on the presentation of net periodic pension and postretirement benefit costs which requires non-service related costs be presented outside of operating profit. As a result, non-service related pension and postretirement benefit costs are now presented in the consolidated statements of income in "Net pension and OPEB cost (benefit), excluding service cost." Prior period information, including segment operating profit, has been reclassified to conform with current year presentation. The adoption of this guidance did not impact "Net Income - Praxair, Inc."PRAXAIR, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Millions of dollars, except per share data)
(UNAUDITED)
Quarter Ended Year to Date June 30, June 30, 2018 2017 2018 2017 SALES $ 3,061 $ 2,834 $ 6,060 $ 5,562 Cost of sales 1,723 1,599 3,400 3,148 Selling, general and administrative 307 305 617 595 Depreciation and amortization 311 292 622 579 Research and development 24 23 48 46 Transaction costs and other charges 24 15 43 21 Other income (expense) - net 17 6 12 — OPERATING PROFIT 689 606 1,342 1,173 Interest expense - net 44 38 90 79 Net pension and OPEB cost (benefit), excluding service cost 2 2 4 (13) INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS 643 566 1,248 1,107 Income taxes 158 157 306 306 INCOME BEFORE EQUITY INVESTMENTS 485 409 942 801 Income from equity investments 14 11 29 23 NET INCOME (INCLUDING NONCONTROLLING INTERESTS) 499 420 971 824 Less: noncontrolling interests (19) (14) (29) (29) NET INCOME - PRAXAIR, INC. $ 480 $ 406 $ 942 $ 795 PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS Basic earnings per share $ 1.67 $ 1.42 $ 3.27 $ 2.78 Diluted earnings per share $ 1.65 $ 1.41 $ 3.24 $ 2.76 Cash dividends $ 0.825 $ 0.7875 $ 1.65 $ 1.575 WEIGHTED AVERAGE SHARES OUTSTANDING Basic shares outstanding (000's) 287,803 286,090 287,654 285,799 Diluted shares outstanding (000's) 290,908 288,535 290,926 288,067 Note: See page 4 for a reconciliation to adjusted amounts which are Non-GAAP.PRAXAIR, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Millions of dollars) (UNAUDITED) June 30, December 31, 2018 2017 ASSETS Cash and cash equivalents $ 479 $ 617 Accounts receivable - net 1,877 1,804 Inventories 606 614 Prepaid and other current assets 202 250 TOTAL CURRENT ASSETS 3,164 3,285 Property, plant and equipment - net 11,701 12,057 Goodwill 3,200 3,233 Other intangibles - net 525 553 Other long-term assets 1,246 1,308 TOTAL ASSETS $ 19,836 $ 20,436 LIABILITIES AND EQUITY Accounts payable $ 967 $ 972 Short-term debt 250 238 Current portion of long-term debt 979 979 Other current liabilities 1,083 1,118 TOTAL CURRENT LIABILITIES 3,279 3,307 Long-term debt 7,229 7,783 Other long-term liabilities 2,786 2,824 TOTAL LIABILITIES 13,294 13,914 REDEEMABLE NONCONTROLLING INTERESTS 14 11 PRAXAIR, INC. SHAREHOLDERS' EQUITY: Common stock 4 4 Additional paid-in capital 4,066 4,084 Retained earnings 13,690 13,224 Accumulated other comprehensive income (loss) (4,596) (4,098) Less: Treasury stock, at cost (7,137) (7,196) Total Praxair, Inc. Shareholders' Equity 6,027 6,018 Noncontrolling interests 501 493 TOTAL EQUITY 6,528 6,511 TOTAL LIABILITIES AND EQUITY $ 19,836 $ 20,436
PRAXAIR, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of dollars) (UNAUDITED) Quarter Ended Year to Date June 30, June 30, 2018 2017 2018 2017 OPERATIONS Net income - Praxair, Inc. $ 480 $ 406 $ 942 $ 795 Noncontrolling interests 19 14 29 29 Net income (including noncontrolling interests) 499 420 971 824 Adjustments to reconcile net income to net cash provided by operating activities: Transaction costs and other charges, net of payments 1 11 15 17 Depreciation and amortization 311 292 622 579 Accounts Receivable (65 ) (46 ) (147 ) (95 ) Inventory (8 ) (3 ) (10 ) (5 ) Payables and accruals 61 18 (6 ) (24 ) Pension contributions (6 ) (3 ) (10 ) (6 ) Deferred income taxes and other (3 ) 12 43 121 Net cash provided by operating activities 790 701 1,478 1,411 INVESTING Capital expenditures (351 ) (325 ) (676 ) (652 ) Acquisitions, net of cash acquired — (1 ) — (2 ) Divestitures and asset sales 62 13 69 17 Net cash used for investing activities (289 ) (313 ) (607 ) (637 ) FINANCING Debt increase (decrease) - net (277 ) (132 ) (492 ) (305 ) Issuances of common stock 15 44 44 70 Purchases of common stock (1 ) — (1 ) (11 ) Cash dividends - Praxair, Inc. shareholders (237 ) (225 ) (474 ) (450 ) Noncontrolling interest transactions and other (16 ) (71 ) (22 ) (84 ) Net cash provided by (used for) financing activities (516 ) (384 ) (945 ) (780 ) Effect of exchange rate changes on cash and cash equivalents (51 ) 12 (64 ) 17 Change in cash and cash equivalents (66 ) 16 (138 ) 11 Cash and cash equivalents, beginning-of-period 545 519 617 524 Cash and cash equivalents, end-of-period $ 479 $ 535 $ 479 $ 535
PRAXAIR, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Millions of dollars) (UNAUDITED) Quarter Ended Year to Date June 30, June 30, 2018 2017 2018 2017 SALES North America $ 1,594 $ 1,505 $ 3,157 $ 2,963 Europe 444 383 872 739 South America 349 373 714 742 Asia 502 422 978 817 Surface Technologies 172 151 339 301 Consolidated sales $ 3,061 $ 2,834 $ 6,060 $ 5,562 OPERATING PROFIT North America $ 432 $ 378 $ 838 $ 735 Europe 87 74 167 141 South America 56 64 110 112 Asia 107 80 211 155 Surface Technologies 31 25 59 51 Segment operating profit $ 713 $ 621 $ 1,385 $ 1,194 Transaction costs and other charges (24 ) (15 ) (43 ) (21 ) Total operating profit $ 689 $ 606 $ 1,342 $ 1,173
PRAXAIR, INC. AND SUBSIDIARIES QUARTERLY FINANCIAL SUMMARY (Millions of dollars, except per share data) (UNAUDITED) 2018 (b) 2017 (c, d) Q2 Q1 Q4 Q3 Q2 Q1 FROM THE INCOME STATEMENT Sales $ 3,061 $ 2,999 $ 2,953 $ 2,922 $ 2,834 $ 2,728 Cost of sales 1,723 1,677 1,661 1,652 1,599 1,549 Selling, general and administrative 307 310 312 300 305 290 Depreciation and amortization 311 311 307 298 292 287 Research and development 24 24 24 23 23 23 Transaction costs and other charges 24 19 17 14 15 6 Other income (expense) - net 17 (5 ) 7 (3 ) 6 (6 ) Operating profit 689 653 639 632 606 567 Interest expense - net 44 46 41 41 38 41 Net pension and OPEB cost (benefit), excluding service cost 2 2 3 6 2 (15 ) Income taxes 158 148 558 162 157 149 Income from equity investments 14 15 12 12 11 12 Net income (including noncontrolling interests) 499 472 49 435 420 404 Less: noncontrolling interests (19 ) (10 ) (16 ) (16 ) (14 ) (15 ) Net income - Praxair, Inc. $ 480 $ 462 $ 33 $ 419 $ 406 $ 389 PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS Diluted earnings per share $ 1.65 $ 1.59 $ 0.11 $ 1.45 $ 1.41 $ 1.35 Cash dividends per share $ 0.8250 $ 0.8250 $ 0.7875 $ 0.7875 $ 0.7875 $ 0.7875 Diluted weighted average shares outstanding (000's) 290,908 290,809 290,456 289,216 288,535 287,384 ADJUSTED AMOUNTS (a) Operating profit $ 713 $ 672 $ 656 $ 646 $ 621 $ 573 Operating margin 23.3 % 22.4 % 22.2 % 22.1 % 21.9 % 21.0 % Net Income $ 501 $ 480 $ 441 $ 433 $ 421 $ 395 Diluted earnings per share $ 1.72 $ 1.65 $ 1.52 $ 1.50 $ 1.46 $ 1.37 FROM THE BALANCE SHEET Net debt (a) $ 7,979 $ 8,297 $ 8,383 $ 8,630 $ 8,832 $ 8,849 Capital (a)
$
14,521 $ 15,194 $ 14,905 $ 15,372 $ 15,102 $ 14,824 FROM THE STATEMENT OF CASH FLOWS Cash flow from operations$
790$
688$
836$
794$
701$
710 Cash flow provided by (used for) investing activities (289 )(318 ) (346 ) (331 ) (313 ) (324 ) Cash flow provided by (used for) financing activities (516 ) (429 ) (473 ) (403 ) (384 ) (396 ) Capital expenditures 351 325 339 320 325 327 Acquisitions — — 15 16 1 1 Cash dividends 237 237 226 225 225 225 OTHER INFORMATION After-tax return on capital (ROC) (a) 10.5 % 9.9 % 9.5 % 12.0 % 11.5 % 11.5 % Adjusted after-tax ROC (a) 13.6 % 13.0 % 12.5 % 12.3 % 12.1 % 12.0 % EBITDA (a) $ 1,014 $ 979 $ 958 $ 942 $ 909 $ 866 EBITDA margin (a) 33.1 % 32.6 % 32.4 % 32.2 % 32.1 % 31.7 % Adjusted EBITDA (a) $ 1,038 $ 998 $ 975 $ 956 $ 924 $ 872 Adjusted EBITDA margin (a) 33.9 % 33.3 % 33.0 % 32.7 % 32.6 % 32.0 % Number of employees 26,658 26,550 26,461 26,531 26,487 26,420 SEGMENT DATA SALES North America $ 1,594 $ 1,563 $ 1,542 $ 1,518 $ 1,505 $ 1,458 Europe 444 428 412 407 383 356 South America 349 365 370 389 373 369 Asia 502 476 470 451 422 395 Surface Technologies 172 167 159 157 151 150 Total sales $ 3,061 $ 2,999 $ 2,953 $ 2,922 $ 2,834 $ 2,728 OPERATING PROFIT North America
432
406 396 386 378 357 Europe 87 80 81 79 74 67 South America 56 54 61 66 64 48 Asia 107 104 90 88 80 75 Surface Technologies 31 28 28 27 25 26 Segment operating profit 713 672 656 646 621 573 Transaction costs and other charges (24 ) (19 ) (17 ) (14 ) (15 ) (6 ) Total operating profit $ 689 $ 653 $ 639 $ 632 $ 606 $ 567 (a) Non-GAAP measure, see Appendix. (b) 2018 includes (i) after-tax charges of $21 million ($0.07 per diluted share) in the second quarter primarily for transaction costs related to the potential Linde merger, and (ii) a charge of $18 million after-tax and noncontrolling interests ($0.06 per diluted share) in the first quarter primarily for transaction costs related to the potential Linde merger. (c) 2017 includes (i) after-tax charges of $6 million ($0.02 per diluted share), $15 million ($0.05 per diluted share), $13 million ($0.05 per diluted share), and $14 million ($0.05 per diluted share) in the first, second, third, and fourth quarters, respectively for transaction costs related to the potential Linde merger, (ii) a pension settlement charge of $2 million ($1 million after-tax) in the third quarter related to lump sum benefit payments made from an international pension plan, and (iii) income tax charges, net of $394 million ($1.36 per diluted share) in the fourth quarter due to U.S. tax reform. (d) As a result of the adoption of new accounting guidance on the presentation of net periodic pension and postretirement benefit costs, prior period information has been reclassified to conform with current year presentation.
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 2018 transaction costs and other charges, 2017 transaction costs and other charges, 2017 third quarter pension settlement, 2017 fourth quarter U.S. tax reform, 2016 third quarter cost reduction program and pension settlement, and 2016 first quarter bond redemption.
Adjusted Amounts
Year-to-date June 30, Second Quarter First Quarter Year Fourth Quarter Third Quarter Second Quarter First Quarter Year Third Quarter First Quarter 2018 2018 2018 2017 2017 2017 2017 2017 2016 2016 2016Adjusted Operating Profit and Operating Profit Margin
Reported operating profit $ 1,342 $ 689 $ 653 $ 2,444 $ 639 $ 632 $ 606 $ 567 $ 2,247 $ 505 $ 554 Add: Cost reduction program and other charges, net — — — — — — — — 96 96 — Add: Transaction costs and other charges 43 24 19 52 17 14 15 6 — — — Total adjustments 43 24 19 52 17 14 15 6 96 96 — Adjusted operating profit $ 1,385 $ 713 $ 672 $ 2,496 $ 656 $ 646 $ 621 $ 573 $ 2,343 $ 601 $ 554 Reported percentage change 14 % 14 % Adjusted percentage change 16 % 15 % Reported sales $ 6,060 $ 3,061 $ 2,999 $ 11,437 $ 2,953 $ 2,922 $ 2,834 $ 2,728 $ 10,534 $ 2,716 $ 2,509 Adjusted operating profit margin 22.9 % 23.3 % 22.4 % 21.8 % 22.2 % 22.1 % 21.9 % 21.0 % 22.2 % 22.1 % 22.1 %Adjusted Interest Expense - net
Reported interest expense - net $ 90 $ 44 $ 46 $ 161 $ 41 $ 41 $ 38 $ 41 $ 190 $ 43 $ 65 Less: Bond redemption — — — — — — — — (16 ) — (16 ) Adjusted interest expense - net $ 90 $ 44 $ 46 $ 161 $ 41 $ 41 $ 38 $ 41 $ 174 $ 43 $ 49Adjusted Net Pension and OPEB cost (benefit), excluding service cost
Reported net pension and OPEB cost (benefit), excluding service cost
$ 4 $ 2 $ 2 $ (4 ) $ 3 $ 6 $ 2 $ (15 ) 9 8 — Less: Pension settlement charge — — — (2 ) — (2 ) — — (4 ) (4 ) —Adjusted net Pension and OPEB cost (benefit), excluding service cost
$ 4 $ 2 $ 2 $ (6 ) $ 3 $ 4 $ 2 $ (15 ) $ 5 $ 4 $ —Adjusted Income Taxes
Reported income taxes $ 306 $ 158 $ 148 $ 1,026 $ 558 $ 162 $ 157 $ 149 $ 551 $ 120 $ 133 Add: Cost reduction program and other charges, net — — — — — — — — 28 28 — Add: Bond redemption — — — — — — — — 6 — 6 Add: Pension settlement charge — — — 1 — 1 — — 1 1 — Add: Tax reform — — — (394 ) (394 ) — — — — — — Add: Transaction costs and other charges 5 3 2 4 3 1 — — — — — Total adjustments 5 3 2 (389 ) (391 ) 2 — — 35 29 6 Adjusted income taxes $ 311 $ 161 $ 150 $ 637 $ 167 $ 164 $ 157 $ 149 $ 586 $ 149 $ 139Adjusted Effective Tax Rate
Reported income before income taxes and equity investments $ 1,248 $ 643 $ 605 $ 2,287 $ 595 $ 585 $ 566 $ 541 $ 2,048 $ 454 $ 489 Add: Cost reduction program and other charges, net — — — — — — — — 96 96 — Add: Bond redemption — — — — — — — — 16 — 16 Add: Pension settlement charge — — — 2 — 2 — — 4 4 — Add: Transaction costs and other charges 43 24 19 52 17 14 15 6 — — — Total adjustments 43 24 19 54 17 16 15 6 116 100 16 Adjusted income before income taxes and equity investments $ 1,291 $ 667 $ 624 $ 2,341 $ 612 $ 601 $ 581 $ 547 $ 2,164 $ 554 $ 505 Reported effective tax rate 24.5 % 24.6 % 24.5 % 44.9 % 93.8 % 27.7 % 27.7 % 27.5 % 26.9 % 26.4 % 27.2 % Adjusted effective tax rate 24.1 % 24.1 % 24.0 % 27.2 % 27.3 % 27.3 % 27.0 % 27.2 % 27.1 % 26.9 % 27.5 %Adjusted Noncontrolling Interests
Reported noncontrolling interests $ 29 $ 19 $ 10 $ 61 $ 16 $ 16 $ 14 $ 15 $ 38 $ 5 $ 10 Add: Cost reduction program and other charges, net (1 ) — (1 ) — — — — — 5 5 — Total adjustments (1 ) — (1 ) — — — — — 5 5 — Adjusted noncontrolling interests $ 28 $ 19 $ 9 $ 61 $ 16 $ 16 $ 14 $ 15 $ 43 $ 10 $ 10Adjusted Net Income - Praxair, Inc.
Reported net income - Praxair, Inc. $ 942 $ 480$
462$
1,247$
33$
419$
406$
389$
1,500$
339$
356
Add: Cost reduction program and other charges, net 1 — 1 — — — — — 63
63
— Add: Bond redemption — — — — — — — — 10 — 10 Add: Pension settlement charge — — — 1 — 1 — — 3 3 — Add: Tax reform — — — 394 394 — — — — — — Add: Transaction costs and other charges38 21 17 48 14 13 15 6 — — — Total adjustments 39 21 18 443 408 14 15 6 76 66 10 Adjusted net income - Praxair, Inc. $ 981 $ 501 $ 480 $ 1,690 $ 441 $ 433 $ 421 $ 395 $ 1,576 $ 405 $ 366 Reported percentage change 18 % 18 % Adjusted percentage change 20 % 19 %
Adjusted Diluted EPS
Reported diluted EPS $ 3.24 $ 1.65$
1.59$
4.32$
0.11$
1.45$
1.41$
1.35$
5.21$
1.18$
1.24 Add: Cost reduction program and other charges, net — — — — — — — — 0.22 0.22 — Add: Bond redemption — — — — — — — — 0.04 — 0.04 Add: Pension settlement charge — — — — — — — — 0.01 0.01 — Add: Tax reform — — 1.36 1.36 — — — — — — Add: Transaction costs and other charges 0.13 0.07 0.06 0.17 0.05 0.05 0.05 0.02 — — — Total adjustments 0.13 0.07 0.06 1.53 1.41 0.05 0.05 0.02 0.27 0.23 0.04 Adjusted diluted EPS $ 3.37 $ 1.72 $ 1.65 $ 5.85 $ 1.52 $ 1.50 $ 1.46 $ 1.37 $ 5.48 $ 1.41 $ 1.28 Reported percentage change 17 % 17 % Adjusted percentage change 19 % 18 %2018 2017 2016 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 (a)
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 $ 790 $ 688 $ 836 $ 794 $ 701 $ 710 $ 726 $ 788 $ 706 $ 569 Less: capital expenditures (351 ) (325 ) (339 ) (320 ) (325 ) (327 ) (409 ) (376 ) (357 ) (323 ) Free Cash Flow $ 439 $ 363 $ 497 $ 474 $ 376 $ 383 $ 317 $ 412 $ 349 $ 246Net Debt, Capital and 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 $ 8,458 $ 8,842 $ 9,000 $ 9,237 $ 9,367 $ 9,368 $ 9,515 $ 9,842 $ 9,956 $ 9,404 Less: cash and cash equivalents (479 ) (545 ) (617 ) (607 ) (535 ) (519 ) (524 ) (627 ) (567 ) (221 ) Net debt 7,979 8,297 8,383 8,630 8,832 8,849 8,991 9,215 9,389 9,183 Equity and redeemable noncontrolling interests: Redeemable noncontrolling interests 14 13 11 11 10 10 11 11 12 119 Praxair, Inc. shareholders' equity 6,027 6,368 6,018 6,256 5,807 5,529 5,021 5,245 5,140 4,888 Noncontrolling interests 501 516 493 475 453 436 420 393 407 417 Total equity and redeemable noncontrolling interests 6,542 6,897 6,522 6,742 6,270 5,975 5,452 5,649 5,559 5,424 Capital $ 14,521 $ 15,194 $ 14,905 $ 15,372 $ 15,102 $ 14,824 $ 14,443 $ 14,864 $ 14,948 $ 14,607 Debt-to-capital 54.9 % 54.6 % 56.2 % 56.1 % 58.5 % 59.7 % 62.3 % 62.0 % 62.8 % 62.9 %After-tax Return on Capital and Adjusted 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).
Reported net income - Praxair, Inc. $ 480 $ 462 $ 33 $ 419 $ 406 $ 389 $ 406 $ 339 $ 399 $ 356 Add: noncontrolling interests 19 10 16 16 14 15 13 5 10 10 Add: interest expense - net 44 46 41 41 38 41 38 43 44 65 Less: tax benefit on interest expense - net * (11 ) (11 ) (11 ) (11 ) (11 ) (12 ) (10 ) (12 ) (12 ) (20 ) Net operating profit after-tax (NOPAT) $ 532 $ 507 $ 79 $ 465 $ 447 $ 433 $ 447 $ 375 $ 441 $ 411 Pre-tax Adjustments: Add: Cost reduction program and other charges, net — — — — — — — 96 — — Add: Pension settlement charge — — — 2 — — — 4 — — Add: Transaction costs and other charges 24 19 17 14 15 6 — — — — Less: income taxes on pre-tax adjustments (3 ) (2 ) (3 ) — — — — (29 ) — — Add: Tax reform net income tax charge — — 394 — — — — — — — Adjusted NOPAT $ 553 $ 524 $ 487 $ 481 $ 462 $ 439 $ 447 $ 446 $ 441 $ 411 4-quarter trailing NOPAT $ 1,583 $ 1,497 $ 1,424 $ 1,792 $ 1,702 $ 1,696 $ 1,674 $ 1,688 $ 1,751 $ 1,658 4-quarter trailing adjusted NOPAT $ 2,045 $ 1,953 $ 1,869 $ 1,829 $ 1,794 $ 1,773 $ 1,745 $ 1,759 $ 1,769 $ 1,789 Ending capital (see above) $ 14,521 $ 15,194 $ 14,905 $ 15,372 $ 15,102 $ 14,824 $ 14,443 $ 14,864 $ 14,948 $ 14,607 5-quarter average ending capital $ 15,019 $ 15,079 $ 14,929 $ 14,921 $ 14,836 $ 14,737 $ 14,570 $ 14,513 $ 14,480 $ 14,451 After-tax ROC (4-quarter trailing NOPAT / 5-quarter average capital) 10.5 % 9.9 % 9.5 % 12.0 % 11.5 % 11.5 % 11.5 % 11.6 % 12.1 % 11.5 % Adjusted after-tax ROC (4-quarter trailing adjusted NOPAT / 5-quarter average capital) 13.6 % 13.0 % 12.5 % 12.3 % 12.1 % 12.0 % 12.0 % 12.1 % 12.2 % 12.4 %* Tax benefit on interest expense - net is generally presented using the reported effective rate.
EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin - These measures are used by investors, financial analysts and management to assess a company's profitability.
Reported net income - Praxair, Inc. $ 480 $ 462 $ 33 $ 419 $ 406 $ 389 $ 406 $ 339 $ 399 $ 356 Add: noncontrolling interests 19 10 $ 16 16 14 15 13 5 10 10 Add: interest expense - net 44 46 $ 41 41 38 41 38 43 44 65 Add: net pension and OPEB cost (benefit), excluding service cost 2 2 3 6 2 (15 ) (1 ) 8 2 — Add: income taxes 158 148 558 162 157 149 152 120 146 133 Add: depreciation and amortization 311 311 307 298 292 287 285 284 281 272 EBITDA $ 1,014 $ 979 $ 958 $ 942 $ 909 $ 866 $ 893 $ 799 $ 882 $ 836 Adjustments: Add: Cost reduction program and other charges, net — — — — — — — 96 — — Add: Transaction costs and other charges 24 19 17 14 15 6 — — — — Adjusted EBITDA $ 1,038 $ 998 $ 975 $ 956 $ 924 $ 872 $ 893 $ 895 $ 882 $ 836 Reported sales 3,061 2,999 2,953 2,922 2,834 2,728 2,644 2,716 2,665 2,509 EBITDA margin 33.1 % 32.6 % 32.4 % 32.2 % 32.1 % 31.7 % 33.8 % 29.4 % 33.1 % 33.3 % Adjusted EBITDA margin 33.9 % 33.3 % 33.0 % 32.7 % 32.6 % 32.0 % 33.8 % 33.0 % 33.1 % 33.3 % (a) 2016 first quarter operating cash flow was restated for the reclassification of $16 million cash payment related to the bond redemption from operating cash flow to financing cash flow on the statement of cash flow pursuant to new accounting guidance adopted in the first quarter of 2018 relating to the classification of certain cash receipts and payments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180726005170/en/
Praxair MediaLisa Esneault, 203-837-2448lisa_esneault@praxair.comorPraxair InvestorsJuan Pelaez, 203-837-2213juan_pelaez@praxair.com
1 Year P10 Chart |
1 Month P10 Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions