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PRAXAIR REPORTS FIRST QUARTER RESULTS

 DANBURY, Conn., April 26 /PRNewswire/ -- Praxair, Inc. (NYSE: PX) today reported 1993 first quarter net income of $33 million or $0.25 per share on sales of $594 million, compared to $31 million or $0.24 per share (before the cumulative effect of two new accounting standards) on sales of $653 million in the 1992 first quarter. The 1993 sales include a reduction of $32 million due to a change in the method of allocating translation effects in Brazil (see "Inflation Accounting For Brazilian Operations").
 Commenting on the quarter's results, H. William Lichtenberger, chairman and chief executive officer, said, "Tough business conditions significantly influenced operating results in the quarter. In the U.S., although industrial gases demand improved, especially in March, operating profit declined due to higher operating costs and lower prices. In addition, we experienced adverse currency effects in Europe and Canada. Surface Technologies results were lower worldwide due to the continued weakness in commercial and military aircraft markets.
 "We delivered improved net income by taking advantage of lower interest rates and through effective tax planning in Brazil," Lichtenberger continued.
 "To improve operating profit and net income in the future, we are accelerating our global work process improvement efforts to increase revenues and eliminate costs, while meeting customer requirements."
 Cash flow from operations was $67 million, and was used principally to reinvest for growth in the company's strategic industrial gas markets around the world. At the same time, Praxair's debt-to-capital ratio decreased from 61 percent as of Dec. 31, 1992 to 59 percent on March 31, 1993, principally through increased shareholders' equity.
 Praxair is the largest industrial gases supplier in North and South America, and one of the largest worldwide, with 1992 sales of $2.6 billion. The company also is a leading worldwide supplier of metallic and ceramic coatings and powders. Praxair was formerly Union Carbide Industrial Gases, Inc. and Linde in North America.
 NOTE: To provide more information on a timely basis, Praxair is including a condensed consolidated balance sheet and statement of cash flows as attachments to this press release. Also attached are a consolidated statement of income, segment data, and detail on the allocation of translation effects in Brazil.
 PRAXAIR, INC. AND SUBSIDIARIES
 Consolidated Statement of Income
 (Unaudited,Millions of dollars except per share data)
 Periods ended March 31 Three Months Ended
 1993 1992(a)
 SALES $ 594 $ 653
 Cost of sales, exclusive of depreciation
 and amortization 337 352
 Selling, general and administrative 97 99
 Depreciation and amortization 66 63
 Research and development 14 15
 Other expenses-net 3 30
 OPERATING PROFIT 77 94
 Interest expense 26 33
 INCOME BEFORE INCOME TAXES 51 61
 Income taxes 10 23
 INCOME OF CONSOLIDATED ENTITIES 41 38
 Minority interests (10) (11)
 Income from equity investments 2 4
 INCOME BEFORE CUMULATIVE EFFECT OF
 ACCOUNTING CHANGES 33 31
 Cumulative effect of accounting changes - (144)
 NET INCOME (LOSS) $ 33 $ (113)
 PER SHARE:(b)
 Income before cumulative effect of
 accounting changes $ .25 $ .24
 Cumulative effect of accounting changes - (1.12)
 Net Income (Loss) $ .25 $ (.88)
 Note: (a) Refer to attachment, page 7, relating to accounting for
 inflation in Brazil.
 (b) Based on 134,339,977 shares (128,631,034 shares in 1992
 on a pro forma basis).
 PRAXAIR, INC. AND SUBSIDIARIES
 Geographic Segment Data
 (Unaudited, Millions of Dollars)
 Periods ended March 31 Three Months Ended
 1993 1992
 SALES
 United States $ 288(a) $ 280
 Brazil 103 145(b)
 Europe 103 123
 Canada, Mexico, Asia & Other 100 105
 Total (a) $ 594(a) $ 653(b)
 OPERATING PROFIT
 United States $ 36(c) $ 37
 Brazil 15(c) 23
 Europe 13 19
 Canada, Mexico, Asia & Other 13(c) 15
 Total $ 77(c) $ 94
 INCOME BEFORE CUMULATIVE EFFECT OF
 ACCOUNTING CHANGES
 Brazil (Praxair Share) $ 7 $ 8
 Praxair Excluding Brazil 26 23
 Total $ 33 $ 31


Note: (a) Effective January 1, 1993, Praxair began consolidating a U.S. packaged gas subsidiary, Altair Gases and Equipment, Inc., previously carried at equity. First quarter 1993 sales of Altair were $12 million, net of intercompany transactions.
 (b) Effective Jan. 1, 1993, Praxair began allocating translation effects of its Brazilian operations to individual line items on the consolidated statement of income, including sales. On a pro forma basis, adjusted for the new allocation process, 1992 first quarter sales would have been $113 million for Brazil and $621 million consolidated.
 (c) Starting in the third quarter of 1992 and continuing in 1993, Praxair changed its allocation of technology costs among geographic segments which increased U.S. operating profit for the first quarter 1993 by $6 million and reduced operating profit for Brazil by $3 million and for Canada, Mexico, Asia and Other by $3 million. Postretirement benefit plan changes adopted in the first quarter 1993 improved operating profit by $3 million in the U.S. Excluding these items, U.S. operating profit would have been $27 million (Brazil: $18 million; Canada, Mexico, Asia & Other: $16 million.)
 PRAXAIR, INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheet
 (Millions of Dollars)
 March 31,
 1993 December 31,
 (Unaudited) 1992
 ASSETS
 Cash and cash equivalents $ 28 $ 24
 Accounts receivable 484 491
 Inventories 147 147
 Prepaid and other 59 29
 TOTAL CURRENT ASSETS 718 691
 Property, plant and equipment - net 2,296 2,315
 Other assets 329 338
 TOTAL ASSETS $3,343 $3,344
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts payable $ 165 $ 181
 Short-term debt 452 750
 Current portion of long-term debt 27 33
 Other current liabilities 261 246
 TOTAL CURRENT LIABILITIES 905 1,210
 Long-term debt 961 669
 Other long-term obligations 491 520
 TOTAL LIABILITIES 2,357 2,399
 Minority interests 402 401
 Shareholders' equity 584 544
 TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY $3,343 $3,344
 PRAXAIR, INC. AND SUBSIDIARIES
 Condensed Consolidated Statement of Cash Flows
 (Unaudited, Millions of Dollars)
 Periods ended March 31 Three Months Ended
 1993 1992
 Net Cash provided by (used for):
 Operating activities $ 67 $ 69
 Investing activities (a) (55) (35)
 Financing activities (b) (5) (56)
 7 (22)
 Effect of exchange rate changes on
 Cash and cash equivalents (3) (4)
 Change in cash and cash equivalents 4 (26)

 Cash & cash equivalents beginning-of-year 24 82
 Cash & cash equivalents end-of-period $ 28 $ 56
 Periods ended March 31 Three Months Ended
 1993 1992
 (a) Investing activities include the following:
 Capital expenditures $ (56) $ (71)
 Investments (8) (3)
 Divestitures and asset sales 9 39
 $ (55) $ (35)
 (b) Financing activities include the following:
 Debt reductions $ (13) $ (32)
 Issuances of common stock 21 -
 Cash dividends (8) -
 Other (5) (24)
 $ (5) $ (56)
 INFLATION ACCOUNTING FOR BRAZILIAN OPERATIONS
 Previous accounting for hyperinflation in Brazil caused overstatements of certain line items in the consolidated statement of income, primarily sales and certain operating expense line items, with the offsetting translation effects in "Other expenses - net." Effective Jan. 1, 1993, Praxair began allocating the translation effects for its Brazilian operations to the sales and certain operating expense line items on the consolidated statement of income. Praxair believes that such allocation will improve the usefulness of the consolidated and Brazilian financial information by eliminating many of the accounting effects caused by hyperinflation and will significantly enhance comparability in future periods. The new allocation will not impact consolidated or Brazilian operating profit, net income or the balance sheet. Prior year financial statements have not been reclassified.
 To facilitate comparisons between 1993 and 1992 results, the following is a reconciliation between the consolidated 1992 first quarter reported results and such results on a pro forma basis, adjusted for the new allocation of translation effects in Brazil.
 Three months ended March 31, 1992 1993
 Reported Allocation Pro Forma
 (millions of dollars)
 Sales $ 653 $ (32) $ 621 $ 594
 Cost of sales 352 (7) 345 337
 Selling, general and
 administrative 99 (4) 95 97
 Depreciation & amortization 63 -- 63 66
 Research & development 15 -- 15 14
 Other expenses - net 30 (21) 9 3
 Operating profit $ 94 $ 94 $ 77
 -0- 4/26/93
 /CONTACT: Susan Szita Gore of Praxair, Inc., 203-794-5593/
 (PX)


CO: Praxair, Inc. ST: Connecticut IN: OIL SU: ERN

TM -- NY012 -- 0407 04/26/93 06:01 EDT
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Date:Apr 26, 1993
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