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PRAXAIR REPORTS THIRD QUARTER RESULTS

 DANBURY, Conn., Oct. 26 /PRNewswire/ -- Praxair, Inc. (NYSE: PX) today reported 1993 third quarter net income of $36 million or $0.27 per share before the impact of the U.S. tax rate increase ($4 million or $0.03 per share), compared to $33 million or $0.25 per share in the 1992 third quarter.
 Commenting on the quarter's results, H. William Lichtenberger, Praxair chairman and chief executive officer, said, "We are encouraged by the significant progress we are making in worldwide profit improvement efforts and cash management, by the good volume growth in our principal markets, and by the improved results at Surface Technologies resulting from major cost reductions. However, we continue to face a challenging operating environment, with sluggish economies, pricing pressure, and unfavorable currency exchange rates in Europe and Canada.
 "Looking ahead," Lichtenberger continued, "actions being taken to better serve customers, improve operations and reduce corporate overhead, together with higher operating rates and stabilizing pricing trends in the U.S., are providing the foundation for future earnings growth."
 For the first nine months of 1993, Praxair had net income of $103 million or $0.76 per share compared to net income, before the cumulative effect of accounting changes, of $96 million or $.73 per share in the 1992 period.
 Cash flow from operations improved significantly in this quarter to $107 million from $42 million in the 1992 period, reflecting success with initiatives to more effectively manage working capital. Debt, however, increased by $51 million during the quarter as a result of investing $91 million, primarily for increased ownership in affiliates in Spain, Argentina and Italy. This increase in debt is expected to be offset by future cash flow.
 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 metal and ceramic coatings and powders.
 PRAXAIR, INC. AND SUBSIDIARIES
 Consolidated Statement of Income
 (Unaudited, millions of dollars except per share data)
 Periods ended Sept. 30 Quarter Nine months
 1993 1992(a) 1993 1992(a)
 Sales $608 $652 $1,825 $1,967
 Cost of sales, exclusive
 of depreciation &
 amortization 351 368 1,039 1,082
 Selling, general and
 administrative 95 100 294 300
 Depreciation and
 amortization 65 63 196 190
 Research and development 13 16 41 46
 Other expenses-net -- 22 4 83
 Operating profit 84 83 251 266
 Interest expense 26 33 80 93
 Income before income taxes 58 50 171 173
 Income taxes 13 8 35 49
 Income of Consolidated
 entities 45 42 136 124
 Minority interests (14) (11) (37) (36)
 Income from equity
 investments 1 2 4 8
 Income before cumulative
 effect of accounting changes 32 33 103 96
 Cumulative effect of
 accounting changes - - - (144)
 Net income (loss) $ 32 $ 33 $ 103 $ (48)
 Per Share(b)
 Income before cumulative
 effect of accounting changes $0.24 $0.25 $0.76 $0.73
 Cumulative effect of
 accounting changes - - - (1.10)
 Net Income (Loss) $0.24 $0.25 $0.76 $(0.37)
 Cash dividends $0.0625 $0.0625 $0.1875 $0.0625
 NOTES: (a) Refer to Inflation Accounting for Brazilian Operations.
 (b) Based on 135,337,739 and 134,839,205 shares for the quarter and nine months ended September 30, 1993 (132,082,982 for the quarter ended Sept. 30, 1992 and 131,036,768 shares for the nine months ended Sept. 30, 1992 on a pro forma basis).
 PRAXAIR, INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheet
 (Millions of dollars)
 Sept. 30, 1993 Dec. 31, 1992
 (Unaudited)
 Assets
 Cash and cash equivalents $ 38 $ 24
 Accounts receivable 472 491
 Inventories 137 147
 Prepaid and other 55 29
 Total current assets 702 691
 Property, plant and equipment-net 2,295 2,315
 Other assets 328 338
 Total Assets $3,325 $3,344
 Liabilities and Shareholders' Equity
 Accounts payable $ 168 $ 181
 Short-term debt 472 750
 Current portion of long-term debt 25 33
 Other current liabilities 264 246
 Total current liabilities 929 1,210
 Long-term debt 938 669
 Other long-term obligations 486 520
 Total liabilities 2,353 2,399
 Minority interests 348 401
 Shareholders' equity 624 544
 Total liabilities and
 shareholders' equity $3,325 $3,344
 PRAXAIR, INC. AND SUBSIDIARIES
 Condensed Consolidated Statement of Cash Flows
 (Unaudited, millions of dollars)
 Periods ended Sept. 30 Nine Months
 1993 1992
 Net Cash provided by (used for):
 Operating Activities $ 303 $ 218
 Investing activities (a) (251) (227)
 Financing activities (b) (18) (60)
 34 (69)
 Effect of exchange rate changes on
 Cash and cash equivalents (20) (6)
 Change in cash and cash equivalents 14 (75)
 Cash and cash equivalents beginning
 of year 24 82
 Cash and cash equivalents
 end-of-period $ 38 $ 7
 Periods ended Sept. 30 Nine Months
 1993 1992
 (a) Investing activities include
 the following:
 Capital expenditures $(184) $ (255)
 Investments (101) (29)
 Divestitures and asset sales 34 57
 $(251) $ (227)
 (b) Financing activities include
 the following:
 Debt reductions-net $ (21) $ (41)
 Issuances of common stock 39 5
 Cash dividends (24) (8)
 Other (12) (16)
 $ (18) $ (60)
 PRAXAIR, INC. AND SUBSIDIARIES
 Geographic Segment Data
 (Unaudited, millions of dollars)
 Periods ended Sept. 30 Quarter Nine months
 1993 1992 1993 1992
 Sales
 United States $300(a) $276 $ 886(a) $ 837
 Brazil 110 149(b) 320 446(b)
 Europe 94 121 302 366
 Canada, Mexico, Asia and
 Other 104 106 317 318
 $608(a) $652(b) $1,825(a) $1,967(b)
 Operating Profit
 United States $ 36 $ 39(c) $ 110 $ 106(c)
 Brazil 22 20(c) 55 67(c)
 Europe 13 17 45 57
 Canada, Mexico, Asia and
 Other 13 7(c) 41 36(c)
 $ 84 $ 83(c) $ 251 $ 266(c)
 Income Before Cumulative
 Effect of Accounting
 Changes
 Brazil (Praxair Share) $ 13 $ 8 $ 30 $ 24
 Praxair Excluding Brazil 19(d) 25 73(d) 72
 $ 32(d) $ 33 $ 103(d) $ 96
 NOTES: (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 nine months ended Sept. 30, 1993, sales of Altair were $13 million and $37 million, respectively, net of intercompany transactions.
 (b) As discussed in "Inflation Accounting For Brazilian Operations," 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 nine months ended Sept. 30, 1992, would have been $113 million and $346 million, respectively, for Brazil and $616 million and $1,867 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. Also, postretirement benefit plan changes were adopted in the first quarter of 1993.
 To facilitate comparisons with 1993 results, following is a pro forma presentation of 1992 operating profit:
 Technology Plan Pro
 Reported Costs Changes Forma
 Quarter Ended Sept. 30, 1992:
 United States $ 39 $(4) $ 4 $ 39
 Brazil 20 (1) - 19
 Canada, Mexico, Asia & Other 7 5 - 12
 Nine Months Ended Sept. 30, 1992:
 United States $106 $ 7 $ 10 $123
 Brazil 67 (5) - 62
 Canada, Mexico, Asia & Other 36 (2) - 34
 NOTE: (d) Income before cumulative effect of accounting changes for the quarter and nine months ended Sept. 30, 1993 includes a $4 million charge relating to the effect of changes in the U.S. tax law.
 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 nine months ended Sept. 30, 1992 and such results on a pro forma basis, adjusted for the new allocation of translation effects in Brazil.
 Quarter Ended September 30, 1992 1993
 Pro
 Reported Allocation Forma
 (Millions of dollars)
 Sales $ 652 $ (36) $ 616 $ 608
 Cost of sales 368 (9) 359 351
 Selling, general and
 administrative 100 (6) 94 95
 Depreciation and
 amortization 63 - 63 65
 Research and development 16 - 16 13
 Other expenses-net 22 (21) 1 -
 Operating profit $ 83 $ 83 $ 84
 Nine Months Ended June 30, 1992 1993
 Pro
 Reported Allocation Forma
 (Millions of dollars)
 Sales $1,967 $ (100) $1,867 $1,825
 Cost of sales 1,082 (23) 1,059 1,039
 Selling, general and
 administrative 300 (14) 286 294
 Depreciation and
 amortization 190 - 190 196
 Research and development 46 - 46 41
 Other expenses-net 83 (63) 20 4
 Operating profit $ 266 $ 266 $ 251
 -0- 10/26/93
 /CONTACT: Susan Szita Gore of Praxair, Inc., 203-794-5593/
 (PX)


CO: Praxair ST: Connecticut IN: CHM SU: ERN

TM -- NY003 -- 6643 10/26/93 06:01 EDT
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Date:Oct 26, 1993
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