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PRAXAIR REPORTS INCREASE IN SECOND QUARTER INCOME

 PRAXAIR REPORTS INCREASE IN SECOND QUARTER INCOME
 DANBURY, Conn., July 20 /PRNewswire/ -- Praxair, Inc. (NYSE: PX),


today reported that its 1992 second quarter net income was $34 million or $0.26 per share (on a pro forma basis) on sales of $662 million, compared to $28 million or $0.23 per share on sales of $614 million in the 1991 period. Net income for the first half was $67 million or $0.52 per share on sales of $1,315 million, compared to $55 million or $0.44 per share on sales of $1,227 million in the first half of 1991.
 Praxair became an independent public company on June 30, following the distribution of its shares to stockholders of Union Carbide Corporation (NYSE: UK). Union Carbide is separately issuing its own financial results.
 "With the spin-off complete, we are now turning the attention and energy of our entire organization to improving Praxair's profit performance through sales growth and improved productivity," said H. William Lichtenberger, chairman and chief executive officer.
 "We remain cautious about the pace of economic recovery around the world, which is reflected in our operating profit growing at only an 11 percent pace during the quarter," Lichtenberger added. "To help improve that performance, we have teams of people working to bring more value to Praxair's customers and to simplify our internal work processes."
 Praxair Results Less Brazilian Operations
 Net income in the quarter was $26 million on sales of $510 million. A year earlier, net income and sales were $20 million and $491 million, respectively.
 U.S. results improved on sales volume for industrial gases and on productivity gains due to the cost-improvement programs. The improved results were partially offset by expenses related to the formation of Praxair as an independent public company.
 In Europe, higher gases sales volume was offset by increased costs and lower sales from surface technologies. Sales in Canada continued to be adversely affected by the continued recession, but operating profit was improved due to cost-improvement programs. Performance in Mexico improved somewhat as volume increases more than offset higher costs for power. Results from Asia were lower, reflecting lower volumes and pricing and a slowing economy in Korea.
 Worldwide interest expense was lower, as debt owed to Union Carbide was refinanced with floating-rate bank and commercial paper borrowings at lower interest rates.
 Results from Brazilian Operations
 For the quarter, net income of Praxair's Brazilian affiliate, S.A. White Martins, was $16 million (Praxair share $8 million) compared to $16 million (Praxair share $8 million) in the second quarter of 1991. Sales were $152 million compared to $123 million for the comparable 1991 period. Continued favorable pricing and volume comparisons to the prior period, including a new on-site facility, and lower taxes, were offset by higher expenses, lower investment income, and increased interest expense.
 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.
 Unaudited income and segment data follows.
 PRAXAIR, INC.
 Consolidated Statement of Income
 (Dollars in millions, except per share)
 Three months ended June 30 1992 1991
 Net sales $ 662 $ 614
 Cost of sales 361 351
 Research and development 8 9
 Selling, administrative and other 106 108
 Depreciation and amortization 64 56
 Other expense -- net 31 7
 Operating profit 92 83
 Interest expense 27 33
 Income before income taxes 65 50
 Income taxes 19 12
 Income of consolidated entities 46 38
 Minority stockholders' share of net income 14 12
 Praxair share of net income from corporate
 investments carried at equity 2 2
 Net income $ 34 $ 28
 Pro forma earnings per common share (A) $0.26 $0.23
 (A) -- Based on 131,237,191 shares (126,882,138 shares in 1991).
 Six months ended June 30 1992 1991
 Net sales $1,315 $1,227
 Cost of sales 712 692
 Research and development 16 17
 Selling, administrative and other 210 212
 Depreciation and amortization 127 113
 Other expense -- net 61 17
 Operating profit 189 176
 Interest expense 60 69
 Income before income taxes 129 107
 Income taxes 43 34
 Income of consolidated entities 86 73
 Minority stockholders' share of net income 25 21
 Praxair share of net income from corporate
 investments carried at equity 6 3
 Net income $ 67 $ 55
 Pro forma earnings per common share (A) $ 0.52 $ 0.44
 (A) -- Based on 130,530,756 shares (126,665,922 shares in 1991).
 PRAXAIR, INC.
 Segment Data
 (Dollars in millions)
 Three months ended June 30 1992 1991
 Geographic Segments
 Net Sales
 U.S $281 $271
 Brazil 152 123
 Europe 122 114
 Canada, Mexico, Asia & other 107 106
 Total $662 $614
 Operating Profit
 U.S $ 33 $ 31
 Brazil 24 20
 Europe 21 21
 Canada, Mexico, Asia & other 14 11
 Total $ 92 $ 83
 Net Income After Taxes
 Brazil (Praxair Share) $ 8 $ 8
 Praxair less Brazil 26 20
 Total $ 34 $ 28
 Six months ended June 30 1992 1991
 Geographic Segments
 Net Sales
 U.S $ 561 $ 534
 Brazil 297 242
 Europe 245 241
 Canada, Mexico, Asia & other 212 210
 Total $1,315 $1,227
 Operating Profit
 U.S $ 73 $ 67
 Brazil 47 38
 Europe 40 44
 Canada, Mexico, Asia & other 29 27
 Total $ 189 $ 176
 Net Income After Taxes
 Brazil (Praxair Share) $ 16 $ 12
 Praxair less Brazil 51 43
 Total $ 67 $ 55
 -0- 7/20/92
 /CONTACT: W. E. Hoerger of Praxair, 203-794-6986/
 (PX UK) CO: Praxair, Inc.; Union Carbide Corporation ST: Connecticut IN: CHM SU: ERN


GK -- NY089 -- 0983 07/20/92 19:28 EDT
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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