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PRAXAIR REPORTS SECOND QUARTER RESULTS

 DANBURY, Conn., July 28 /PRNewswire/ -- Praxair, Inc. today reported 1993 second quarter net income of $38 million or $0.28 per share, compared to $32 million or $0.24 per share in the 1992 second quarter. Operating profit remained constant, while net income increased primarily due to the company's tax-planning initiatives.
 Compared to the first quarter of 1993, Praxair's operating profit improved from $77 million to $90 million due to worldwide cost containment initiatives and volume growth.
 H. William Lichtenberger, Praxair chairman and chief executive officer, said, "Praxair's operating profit is improving this year primarily as a result of our aggressive cost containment efforts and ability to grow volumes. This improvement is in spite of continued price and cost pressures worldwide and the unfavorable currency impacts in Europe and Canada.
 "The dedication and commitment of our people to satisfy customers and boost productivity through work process improvements and faster decision-making also are expected to drive future earnings improvement."
 In the first six months of 1993, Praxair had net income of $71 million or $0.53 per share compared to net income, before the cumulative effect of accounting changes, of $63 million or $0.48 per share in the 1992 period.
 In the first six months of 1993, Praxair reduced its debt by $68 million while investing $122 million for growth in key markets around the world, thus reducing the company's debt-to-capital ratio to 58 percent.
 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. Attachments:
 PRAXAIR, INC. AND SUBSIDIARIES
 Consolidated Statement Of Income
 (Millions of dollars except per share data - Unaudited)
 Periods ended Quarter Six Months
 June 30 1993 1992(A) 1993 1992(A)
 SALES $623 $662 $1,217 $1,315
 Cost of sales, exclusive
 of depreciation &
 amortization 351 362 688 714
 Selling, general and
 administrative 102 101 199 200
 Depreciation and
 amortization 65 64 131 127
 Research and development 14 15 28 30
 Other expenses-net 1 31 4 61
 OPERATING PROFIT 90 89 167 183
 Interest expense 28 27 54 60
 INCOME BEFORE INCOME TAXES 62 62 113 123
 Income taxes 12 18 22 41
 INCOME OF CONSOLIDATED
 ENTITIES 50 44 91 82
 Minority interests (13) (14) (23) (25)
 Income from equity
 investments 1 2 3 6
 INCOME BEFORE CUMULATIVE
 EFFECT OF ACCOUNTING CHANGES 38 32 71 63
 Cumulative effect of
 accounting changes - - - (144)
 NET INCOME (LOSS) $ 38 $ 32 $ 71 $ (81)
 PER SHARE(B)
 Income before cumulative
 effect of accounting changes. $0.28 $0.24 $0.53 $0.48
 Cumulative effect of
 accounting changes - - - (1.10)
 Net Income (Loss) $0.28 $0.24 $0.53 $(0.62)
 Cash dividends $0.0625 $0.125
 (A) Refer to chart to follow, Inflation Accounting for Brazilian Operations.
 (B) Based on 134,896,655 and 134,569,857 shares for the quarter and six months ended June 30, 1993 (131,237,191 and 130,530,756 shares for the quarter and six months ended June 30, 1992, on a pro forma basis).
 PRAXAIR, INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheet
 (Millions of Dollars)
 6/30/93 12/31/92
 (Unaudited)
 ASSETS
 Cash and cash equivalents $ 44 $ 24
 Accounts receivable 480 491
 Inventories 146 147
 Prepaid and other 53 29
 TOTAL CURRENT ASSETS 723 691
 Property, plant and equipment-net 2,267 2,315
 Other assets 329 338
 TOTAL ASSETS $3,319 $3,344
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts payable $ 167 $ 181
 Short-term debt 408 750
 Current portion of long-term debt 28 33
 Other current liabilities 263 246
 TOTAL CURRENT LIABILITIES 866 1,210
 Long-term debt 948 669
 Other long-term obligations 492 520
 TOTAL LIABILITIES 2,306 2,399
 Minority interests 406 401
 Shareholders' equity 607 544
 TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY $3,319 $3,344
 PRAXAIR, INC. AND SUBSIDIARIES
 Condensed Consolidated Statement Of Cash Flows
 (Millions of Dollars - Unaudited)
 Six Months ended June 30 1993 1992
 Net cash provided by (used for):
 Operating Activities $ 196 $ 176
 Investing activities(A) (106) (126)
 Financing activities(B) (62) (109)
 Total 28 (59)
 Effect of exchange rate changes on
 Cash and cash equivalents (8) (5)
 Change in cash and cash equivalents 20 (64)
 Cash and cash equivalents beginning
 of year 24 82
 Cash and cash equivalents
 end-of-period $ 44 $ 18
 Six Months ended June 30 1993 1992
 (A) Investing activities include
 the following:
 Capital expenditures $(112) $ (164)
 Investments (10) (10)
 Divestitures and asset sales 16 48
 Total $(106) $ (126)
 (B) Financing activities include
 the following:
 Debt reductions $ (68) $ (131)
 Issuances of common stock 33 -
 Cash dividends (16) -
 Other (11) 22
 Total $ (62) $ (109)
 PRAXAIR, INC. AND SUBSIDIARIES
 Geographic Segment Data
 (Millions of Dollars - Unaudited)
 Periods ended Quarter Six Months
 June 30 1993 1992 1993 1992
 SALES
 United States $298(A) $281 $ 586(A) $ 561
 Brazil 107 152(B) 210 297(B)
 Europe 105 122 208 245
 Canada, Mexico, Asia and
 Other 113 107 213 212
 Total $623(A) $662(B) $1,217(A) $1,315(B)
 OPERATING PROFIT
 United States $ 38(C) $ 30 $ 74(C) $ 67
 Brazil 18(C) 24 33(C) 47
 Europe 19 21 32 40
 Canada, Mexico, Asia and
 Other 15(C) 14 28(C) 29
 Total $ 90(C) $ 89 $ 167(C) $ 183
 INCOME BEFORE CUMULATIVE
 EFFECT OF ACCOUNTING
 CHANGES
 Brazil (Praxair Share) $ 10 $ 8 $ 17 $ 16
 Praxair Excluding Brazil 28 24 54 47
 Total $ 38 $ 32 $ 71 $ 63
 (A) Effective Jan. 1, 1993, Praxair began consolidating a U.S. packaged gas subsidiary, Altair Gases and Equipment, Inc., previously carried at equity. For the quarter and six months ended June 30, 1993, sales of Altair were $12 million and $24 million, respectively, net of intercompany transactions.
 (B) As discussed, 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, sales for the quarter and six months ended June 30, 1992, would have been $120 million and $233 million, respectively, for Brazil and $630 million and $1,251 million, respectively, on a consolidated basis.
 (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 quarter and six months ended June 30, 1993 by $5 million and $11 million, respectively, with offsetting reductions to operating profit for Brazil ($1 million and $4 million, respectively) and for Canada, Mexico, Asia and Other ($4 million and $7 million, respectively). Also, postretirement benefit plan changes adopted in the first quarter of 1993 improved U.S. operating profit by $3 million for the quarter and $6 million for the six months.
 Excluding these items, U.S. operating profit would have been $30 million and $57 million for the quarter and six months ended June 30, 1993 (Brazil: $19 million and $37 million; Canada, Mexico, Asia and Other: $19 million and $35 million).
 Inflation Accounting For Brazilian Operations
 Effective Jan. 1, 1993, Praxair began allocating translation effects for its Brazilian operations to the sales and certain operating expense line items on the consolidated statement of income. Prior year financial statements include the translation effects in other expenses- net, and have not been reclassified.
 To facilitate comparisons between 1993 and 1992 results, following is a reconciliation between the consolidated reported results for the quarter and six months ended June 30, 1992 and such results on a pro forma basis, adjusted for the new allocation of translation effects in Brazil.
 Quarter Ended June 30, 1992 1993
 Pro
 Reported Allocation Forma
 (Millions of dollars)
 Sales $ 662 $ (32) $ 630 $ 623
 Cost of sales 362 (7) 355 351
 Selling, general and
 administrative 101 (4) 97 102
 Depreciation and
 amortization 64 - 64 65
 Research and development 15 - 15 14
 Other expenses-net 31 (21) 10 1
 Operating profit $ 89 $ 89 $ 90
 Six Months Ended June 30, 1992 1993
 Pro
 Reported Allocation Forma
 (Millions of dollars)
 Sales $1,315 $ (64) $1,251 $1,217
 Cost of sales 714 (14) 700 688
 Selling, general and
 administrative 200 (8) 192 199
 Depreciation and
 amortization 127 - 127 131
 Research and development 30 - 30 28
 Other expenses-net 61 (42) 19 4
 Operating profit $ 183 - $ 183 $ 167
 -0- 7/28/93
 /CONTACT: Susan Szita Gore of Praxair, 203-794-5593/
 (PX)


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

SM -- NY012 -- 6608 07/28/93 08:41 EDT
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