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PRAXAIR REPORTS HIGHER THIRD QUARTER NET INCOME

 PRAXAIR REPORTS HIGHER THIRD QUARTER NET INCOME
 DANBURY, Conn., Oct. 22 /PRNewswire/ -- Praxair, Inc. (NYSE: PX),


today reported 1992 third quarter net income of $34 million or $0.26 per share on sales of $652 million, compared to net income of $23 million or $0.18 per share on sales of $625 million in the 1991 period. Net income through nine months was $101 million or $0.77 per share on sales of $1,967 million, compared to net income of $78 million or $0.61 per share on sales of $1,852 million for the same period in 1991. Results for the 1991 third quarter included a $7 million restructuring charge ($0.05 per share) for Praxair Canada as part of the company's cost improvement program. Excluding the restructuring charge, 1992 net income increased 13 percent for the quarter and 19 percent through nine months.
 "Our performance largely reflects progress in our cost improvement program," said H. William Lichtenberger, Praxair chairman and chief executive officer. "Weak economic conditions around the world have slowed the growth of customer volume requirements. We are therefore working even harder to help customers create value through the use of our products. At the same time, cost and work process improvements must continue to be a top priority for us."
 Praxair Results Excluding Brazilian Operations
 Net income for the third quarter was $26 million on sales of $503 million. For the same period in 1991, net income and sales were $11 million and $483 million, respectively, including the restructuring charge.
 Results from U.S. operations were about equal to the third quarter of 1991, as higher industrial gases volumes and cost improvement efforts were offset by weak pricing. European results improved through higher volume and favorable currency effects. Results in Canada (excluding the restructuring charge) and Mexico were down slightly on flat sales and increased costs. Results in Asia were lower due to the slower economy in Korea and higher operating costs. In addition, Praxair continued to benefit from lower interest rates compared to 1991.
 Results from Brazilian Operations
 For the quarter, net income of Praxair's Brazilian affiliate, S.A. White Martins, was $15 million (Praxair share $8 million) compared to $22 million (Praxair share $12 million) in the third quarter of 1991. Sales were $149 million versus $142 million for the comparable 1991 period on higher volume and favorable pricing. Net income declined, however, as higher operating profit was more than offset by higher interest expense and taxes.
 Income and Geographic Segment Data follow.
 The company also revised its estimate of the impact associated with its planned fourth quarter adoption of Statements of Financial Accounting Standards Nos. 106 and 109, effective Jan. 1, 1992, as described below.
 Praxair is the largest supplier of industrial gases in North and South America, and one of the largest worldwide. The company also is a major supplier of metallic and ceramic coatings to many industries through Praxair Surface Technologies, Inc.
 PRAXAIR, INC.
 Statement of Income
 (Dollars in millions, except per share)
 Three months ended Sept. 30 1992 1991
 Net sales $652 $625
 Cost of sales 367 359
 Research and development 10 8
 Selling, administrative and other 105 104
 Depreciation and amortization 63 59
 Restructuring costs -- 11
 Other expense - net 22 13
 Operating profit 85 71
 Interest expense 33 32
 Income before income taxes 52 39
 Income taxes 9 2
 Income of consolidated entities 43 37
 Minority interests (11) (13)
 Net income from equity investments 2 (1)
 Net income $34 $ 23
 Earnings per common share (A) $0.26 $0.18
 (A) -- Based on 132,082,982 shares (127,416,857 shares in 1991 on a pro forma basis).
 Nine months ended Sept. 30 1992 1991
 Net sales $1,967 $1,852
 Cost of sales 1,079 1,051
 Research and development 26 25
 Selling, administrative and other 315 316
 Depreciation and amortization 190 172
 Restructuring costs -- 11
 Other expense - net 83 30
 Operating profit 274 247
 Interest expense 93 101
 Income before income taxes 181 146
 Income taxes 52 36
 Income of consolidated entities 129 110
 Minority interests (36) (34)
 Net income from equity investments 8 2
 Net income $ 101 $ 78
 Pro forma earnings per common share (A) $0.77 $0.61
 (A) -- Based on 131,036,768 shares (127,074,588 shares in 1991).
 PRAXAIR, INC.
 Geographic Segment Data
 (Dollars in millions)
 Three months ended Sept. 30 1992 1991
 Net sales:
 U.S. $276 $273
 Brazil 149 142
 Europe 121 103
 Canada, Mexico, Asia & other 106 107
 Total $652 $625
 Operating profit:
 U.S. $ 41 $ 42
 Brazil 20 15
 Europe 17 13
 Canada, Mexico, Asia & other 7 1(A)
 Total $ 85 $ 71
 Net income after taxes:
 Brazil (Praxair share) $ 8 $ 12
 Praxair excluding Brazil 26 11(A)
 Total $ 34 $ 23
 (A) -- Includes an $11 million restructuring charge in Canada ($7 million after-tax).
 Nine months ended Sept. 30 1992 1991
 Net sales:
 U.S. $ 837 $ 807
 Brazil 446 384
 Europe 366 344
 Canada, Mexico, Asia & other 318 317
 Total $1,967 $1,852
 Operating profit:
 U.S. $ 114 $ 109
 Brazil 67 53
 Europe 57 57
 Canada, Mexico, Asia & other 36 28(A)
 Total $ 274 $ 247
 Net income after taxes:
 Brazil (Praxair share) $ 24 $ 24
 Praxair excluding Brazil 77 54(A)
 Total $ 101 $ 78
 (A) -- Includes an $11 million restructuring charge in Canada ($7 million after-tax).
 Additional Information on Accounting Changes
 Praxair has revised its estimates of the impact of adopting Statement of Financial Accounting Standards (SFAS) No. 106 - Employers' Accounting for Postretirement Benefits Other Than Pensions, and SFAS No. 109 - Accounting for Income Taxes.
 For SFAS No. 106, estimates of the initial one-time charge are approximately $235 million ($154 million after-tax). The new estimates are higher than previously estimated, principally due to the inclusion of international postretirement plans and refinements in assumptions and actuarial valuations. SFAS No. 106 also will result in an expense in 1992 of approximately $13 million ($9 million after-tax) higher than the current "pay-as-you-go" expense. The annual expense is expected to be reduced in future years as a result of benefit plan changes currently being considered.
 Praxair estimates that the one-time after-tax income resulting from the adoption of SFAS No. 109 is approximately $10 million.
 The company expects to adopt both standards in the fourth quarter of 1992, effective Jan. 1, 1992, and to record the cumulative effects as a one-time charge.
 -0- 10/22/92
 /CONTACT: Susan Szita Gore of Praxair, 203-794-5593/
 (PX) CO: Praxair, Inc. ST: Connecticut IN: SU: ERN


GK-KW -- NY006 -- 3246 10/22/92 06:01 EDT
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