DANBURY, Conn.--(BUSINESS WIRE)--Praxair, Inc. (NYSE: PX) reported fourth-quarter net income and diluted earnings per share of $420 million and $1.38, respectively. These results include a gain on an acquisition and charges relating to severance and business restructuring actions, primarily in Europe. Excluding these items, adjusted net income and diluted earnings per share were $414 million and $1.36, 7% and 9% above the prior-year quarter, respectively.*
Sales in the fourth quarter were $2,796 million, up 7% from the prior-year quarter due to higher volumes and prices, partially offset by negative currency translation. Reported operating profit in the fourth quarter was $618 million. Adjusted operating profit of $619 million was 10% above the prior-year quarter due to higher volumes and prices combined with productivity improvements.*
For the full year of 2011, reported net income was $1,672 million and reported diluted earnings per share was $5.45. Full-year adjusted net income was $1,666 million, up 13% from 2010. Adjusted diluted earnings per share was $5.43, 15% above the prior year.*
Full-year sales grew 11% from 2010 to $11,252 million, due primarily to higher volumes and prices. Reported operating profit was $2,468 million. Adjusted operating profit of $2,469 million was 14% above 2010, due to higher volumes, price and operating leverage from productivity programs.*
For the full year, cash flow from operations was a record $2,455 million. Capital expenditures, primarily for new production plants under long-term contracts with customers, were $1,797 million. Acquisition expenditures of $294 million were primarily acquisitions of packaged gas distributors in the United States, combined with increased ownership of businesses in Scandinavia and the Middle East. The company paid $602 million of dividends and repurchased $742 million of stock, net of issuances.
Commenting on the financial results and business outlook, Chairman and Chief Executive Officer Steve Angel said, “In 2011, Praxair again delivered strong growth combined with industry-leading profitability. We signed a record amount of new contracts in 2011 and finished the year with a backlog of $2.7 billion of new projects under construction which will come on-stream in 2012, 2013, and 2014.
“As we enter 2012, our outlook remains positive, particularly for the North American energy, manufacturing and materials industries which we serve and the growing economies in Asia and South America. We expect strong project activity again in 2012 and we remain confident in our ability to execute in a manner our customers and shareholders have grown to anticipate.”
For the full year of 2012, Praxair expects sales in the area of $11.7 to $12 billion, up 4% to 7%. On an underlying basis, Praxair is expecting to sustain sales growth of 8% to 12%, similar to 2011, from volume, price, project start-ups and acquisitions. However, at current exchange rates sales growth is expected to be negatively impacted by about 5% due to currency translation which is reflected in our guidance. The company expects diluted earnings per share to be in the range of $5.70 to $5.90 which includes a negative year-over-year impact of about 25 cents at current rates from the strengthening of the U.S. dollar across a number of currencies including the real, euro, peso, won and rupee. Full-year capital expenditures are expected to be in the range of $2.1 to 2.4 billion, and the effective tax rate is forecasted to remain at about 28%.
For the first quarter of 2012, Praxair expects diluted earnings per share in the range of $1.33 to $1.38 which includes a negative year-over-year currency impact of about 7 cents at current exchange rates.
Following is additional detail on fourth-quarter 2011 results by segment.
In North America, fourth-quarter sales were $1,399 million, up 7% from the prior-year quarter. Underlying sales grew 10% from higher volumes and prices, largely attributable to growth in the manufacturing, energy, chemicals and metals markets. Operating profit of $364 million grew 17% from the prior year due to higher volumes, price and cost savings.
In Europe, fourth-quarter sales were $380 million. Sales were 12% above the prior year due primarily to the acquisition of increased ownership of Yara Praxair in Scandinavia, partially offset by lower volume. Operating profit was $61 million in the quarter, compared to $68 million in the prior year primarily due to lower volumes. During the quarter actions were taken to reduce costs, including severance and facility consolidation.
In South America, fourth-quarter sales were $532 million. Sales grew 8% from the prior-year quarter, excluding a 5% negative currency impact, due primarily to higher price and volumes. Operating profit was $118 million as compared to $114 million in the prior-year period due primarily to cost reduction programs and price.
Sales in Asia were $325 million in the quarter, up 6% from the prior year, driven by volume growth in India, China and Korea including new plant start-ups. Sales growth came primarily from metals and chemicals customers. Operating profit was $52 million, as compared to $50 million in the prior-year, due primarily to higher volumes, partially offset by cost inflation and lower volumes in Thailand due to the floods.
Praxair Surface Technologies had fourth-quarter sales of $160 million, up 7%, compared to $150 million in the prior-year quarter. Sales growth came from the energy market from higher coatings of parts used in oil and gas exploration and from higher volumes of aviation coatings. Operating profit increased to $24 million from $20 million in the quarter due to volume growth. During the quarter actions were taken to reduce costs in Europe, including severance and facility consolidation.
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies are making the planet more productive by bringing efficiency and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.
*See the attachments for calculations of non-GAAP measures. Fourth-quarter and full-year 2011 results are adjusted to exclude a gain on acquisition and other restructuring charges. Fourth-quarter and full-year 2010 results are adjusted to exclude Spanish tax settlement and other charges.
Attachments: Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information, Quarterly Financial Summary, and Appendix: Non-GAAP Measures.
A teleconference on Praxair’s fourth-quarter results is being held this morning, January 25, at 11:00 am Eastern Time. The number is (617) 847-8706 -- Passcode: 48944786. The call also is available as a web cast at www.praxair.com/investors. Materials to be used in the teleconference are also available.
This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the impact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause actual future results or circumstances to differ materially from the projections or estimates contained in the forward-looking statements. The company assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A (Risk Factors) in the company’s Form 10-K and 10-Q reports filed with the SEC which should be reviewed carefully. Please consider the company’s forward-looking statements in light of those risks.
PRAXAIR, INC. AND SUBSIDIARIES | |
NON-GAAP RECONCILIATIONS | |
(UNAUDITED) | |
The following Non-GAAP measures are intended to supplement investors' understanding of the company's financial statements by providing measures which investors, financial analysts and management use to help evaluate the company's financial leverage, return on capital and operating performance. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. |
Operating profit | Income Taxes | Praxair Net Income | Diluted EPS | ||||||||||||||||||||||||||||||||||||||||||||
(Millions of dollars, except per share amounts) |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
|||||||||||||||||||||||||||||||||||||||
Fourth Quarter Ended December 31, |
|||||||||||||||||||||||||||||||||||||||||||||||
Reported GAAP amounts | $ | 618 | $ | 505 | $ | 156 | $ | 346 | $ | 420 | $ | 133 | $ | 1.38 | $ | 0.43 | |||||||||||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Gain on acquisition (a) | (39 | ) | - | (3 | ) | - | (37 | ) | - | (0.12 | ) | - | |||||||||||||||||||||||||||||||||||
Cost reduction program (b) | 40 | - | 9 | - | 31 | - | 0.10 | - | |||||||||||||||||||||||||||||||||||||||
Spanish tax settlement (c) | - | - | - | (250 | ) | - | 250 | - | 0.80 | ||||||||||||||||||||||||||||||||||||||
U.S. Homecare divestiture (c) | - | 58 | - | 18 | - | 40 | - | 0.13 | |||||||||||||||||||||||||||||||||||||||
Repatriation tax benefit (c) | - | - | - | 35 | - | (35 | ) | - | (0.11 | ) | |||||||||||||||||||||||||||||||||||||
Total adjustments | 1 | 58 | 6 | (197 | ) | (6 | ) | 255 | (0.02 | ) | 0.82 | ||||||||||||||||||||||||||||||||||||
Adjusted amounts | $ | 619 | $ | 563 | $ | 162 | $ | 149 | $ | 414 | $ | 388 | $ | 1.36 | $ | 1.25 | |||||||||||||||||||||||||||||||
Increase 2011 versus 2010 | 10 | % | 7 | % | 9 | % | |||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 28 | % | 28 | % | |||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, |
|||||||||||||||||||||||||||||||||||||||||||||||
Reported GAAP amounts | $ | 2,468 | $ | 2,082 | $ | 641 | $ | 768 | $ | 1,672 | $ | 1,195 | $ | 5.45 | $ | 3.84 | |||||||||||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Gain on acquisition (a) | (39 | ) | - | (3 | ) | - | (37 | ) | - | (0.12 | ) | ||||||||||||||||||||||||||||||||||||
Cost reduction program (b) | 40 | - | 9 | - | 31 | - | 0.10 | ||||||||||||||||||||||||||||||||||||||||
Spanish tax settlement (c) | - | - | - | (250 | ) | - | 250 | - | 0.80 | ||||||||||||||||||||||||||||||||||||||
U.S. Homecare divestiture (c) | - | 58 | - | 18 | - | 40 | - | 0.13 | |||||||||||||||||||||||||||||||||||||||
Repatriation tax benefit (c) | - | - | - | 35 | - | (35 | ) | - | (0.11 | ) | |||||||||||||||||||||||||||||||||||||
Venezuela currency devaluation (c) | - | 27 | - | 1 | - | 26 | - | 0.08 | |||||||||||||||||||||||||||||||||||||||
Total adjustments | 1 | 85 | 6 | (196 | ) | (6 | ) | 281 | (0.02 | ) | 0.90 | ||||||||||||||||||||||||||||||||||||
Adjusted amounts | $ | 2,469 | $ | 2,167 | $ | 647 | $ | 572 | $ | 1,666 | $ | 1,476 | $ | 5.43 | $ | 4.74 | |||||||||||||||||||||||||||||||
Increase 2011 versus 2010 | 14 | % | 13 | % | 15 | % | |||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 28 | % | 28 | % |
(a) | Net gain on Praxair's acquisition of 16% of Yara Praxair AS and consolidation effective October 2011. Accounting rules require Praxair to fair value its prior 50% ownership interest. | |||
(b) | Charges related to severance and business restructuring actions primarily in Europe (in industrial gases and surface technologies). | |||
(c) | See Praxair's 2010 Annual Report on Form 10-K for additional explanations. | |||
PRAXAIR, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||
(Millions of dollars, except per share data) | ||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||
Quarter Ended | Year to Date | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
SALES (a) | $ | 2,796 | $ | 2,623 | $ | 11,252 | $ | 10,116 | ||||||||||||||||
Cost of sales | 1,598 | 1,492 | 6,458 | 5,754 | ||||||||||||||||||||
Selling, general and administrative | 315 | 301 | 1,239 | 1,196 | ||||||||||||||||||||
Depreciation and amortization | 249 | 240 | 1,003 | 925 | ||||||||||||||||||||
Research and development | 23 | 23 | 90 | 79 | ||||||||||||||||||||
Cost reduction program and other charges - net (b) | 1 | 58 | 1 | 85 | ||||||||||||||||||||
Other income (expense) - net | 8 | (4 | ) | 7 | 5 | |||||||||||||||||||
OPERATING PROFIT | 618 | 505 | 2,468 | 2,082 | ||||||||||||||||||||
Interest expense - net | 38 | 28 | 145 | 118 | ||||||||||||||||||||
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS | 580 | 477 | 2,323 | 1,964 | ||||||||||||||||||||
Income taxes (b) | 156 | 346 | 641 | 768 | ||||||||||||||||||||
INCOME BEFORE EQUITY INVESTMENTS | 424 | 131 | 1,682 | 1,196 | ||||||||||||||||||||
Income from equity investments | 7 | 11 | 40 | 38 | ||||||||||||||||||||
NET INCOME (INCLUDING NONCONTROLLING INTERESTS) | 431 | 142 | 1,722 | 1,234 | ||||||||||||||||||||
Less: noncontrolling interests | (11 | ) | (9 | ) | (50 | ) | (39 | ) | ||||||||||||||||
NET INCOME - PRAXAIR, INC. (b) | $ | 420 | $ | 133 | $ | 1,672 | $ | 1,195 | ||||||||||||||||
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS | ||||||||||||||||||||||||
Basic earnings per share | $ | 1.40 | $ | 0.43 | $ | 5.53 | $ | 3.90 | ||||||||||||||||
Diluted earnings per share (b) | $ | 1.38 | $ | 0.43 | $ | 5.45 | $ | 3.84 | ||||||||||||||||
Cash dividends | $ | 0.50 | $ | 0.45 | $ | 2.00 | $ | 1.80 | ||||||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||||||||||
Basic shares outstanding (000's) | 299,575 | 306,133 | 302,237 | 306,720 | ||||||||||||||||||||
Diluted shares outstanding (000's) | 303,700 | 310,733 | 306,722 | 311,395 | ||||||||||||||||||||
(a) | Sales for the 2011 quarter and year-to-date periods increased $10 million and $101 million, respectively, due to higher cost pass-through, with minimal impact on operating profit compared to 2010. Sales for the quarter and year-to-date periods decreased $34 million and increased $260 million, respectively, due to currency effects versus 2010. | |||
(b) | The 2011 and 2010 quarter and year-to-date amounts include items which the Company believes are not indicative of on-going business trends. For a summary of these items, see the non-GAAP reconciliations, as well as the appendix for non-GAAP measures. | |||
PRAXAIR, INC. AND SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(Millions of dollars) | ||||||||||
(UNAUDITED) | ||||||||||
December 31, | December 31, | |||||||||
2011 | 2010 | |||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ | 90 | $ | 39 | ||||||
Accounts receivable - net | 1,795 | 1,664 | ||||||||
Inventories | 456 | 399 | ||||||||
Prepaid and other current assets | 266 | 276 | ||||||||
TOTAL CURRENT ASSETS | 2,607 | 2,378 | ||||||||
Property, plant and equipment - net | 10,131 | 9,532 | ||||||||
Goodwill | 2,372 | 2,066 | ||||||||
Other intangibles - net | 167 | 132 | ||||||||
Other long-term assets | 1,079 | 1,166 | ||||||||
TOTAL ASSETS | $ | 16,356 | $ | 15,274 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Accounts payable | $ | 896 | $ | 830 | ||||||
Short-term debt | 337 | 370 | ||||||||
Current portion of long-term debt | 387 | 32 | ||||||||
Other current liabilities | 915 | 878 | ||||||||
TOTAL CURRENT LIABILITIES | 2,535 | 2,110 | ||||||||
Long-term debt | 5,838 | 5,155 | ||||||||
Other long-term liabilities | 1,966 | 1,864 | ||||||||
TOTAL LIABILITIES | 10,339 | 9,129 | ||||||||
REDEEMABLE NONCONTROLLING INTERESTS | 220 | - | ||||||||
EQUITY | ||||||||||
Praxair, Inc. shareholders' equity | 5,488 | 5,792 | ||||||||
Noncontrolling interests | 309 | 353 | ||||||||
TOTAL EQUITY | 5,797 | 6,145 | ||||||||
TOTAL LIABILITIES AND EQUITY | $ | 16,356 | $ | 15,274 | ||||||
PRAXAIR, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||
Quarter Ended | Year to Date | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net income - Praxair, Inc. | $ | 420 | $ | 133 | $ | 1,672 | $ | 1,195 | ||||||||||||||||
Noncontrolling interests | 11 | 9 | 50 | 39 | ||||||||||||||||||||
Net income (including noncontrolling interests) | 431 | 142 | 1,722 | 1,234 | ||||||||||||||||||||
Adjustments to reconcile net income to net cash provided | ||||||||||||||||||||||||
by operating activities: | ||||||||||||||||||||||||
Cost reduction program and other charges, net of payments |
(5 | ) | 57 | (5 | ) | $ | 80 | |||||||||||||||||
Deferred income taxes | (36 | ) | 22 | (3 | ) | 133 | ||||||||||||||||||
Depreciation and amortization | 249 | 240 | 1,003 | 925 | ||||||||||||||||||||
Accounts receivable | 94 | 25 | (108 | ) | (114 | ) | ||||||||||||||||||
Inventory | 12 | 1 | (31 | ) | (26 | ) | ||||||||||||||||||
Payables and accruals | 92 | 102 | 44 | 163 | ||||||||||||||||||||
Spanish tax settlement | - | (231 | ) | - | (231 | ) | ||||||||||||||||||
Pension contributions | (7 | ) | (7 | ) | (94 | ) | (124 | ) | ||||||||||||||||
Other | (39 | ) | (61 | ) | (73 | ) | (135 | ) | ||||||||||||||||
Net cash provided by operating activities | 791 | 290 | 2,455 | 1,905 | ||||||||||||||||||||
INVESTING | ||||||||||||||||||||||||
Capital expenditures | (572 | ) | (451 | ) | (1,797 | ) | (1,388 | ) | ||||||||||||||||
Acquisitions, net of cash acquired | (195 | ) | (14 | ) | (294 | ) | (148 | ) | ||||||||||||||||
Divestitures and asset sales | 46 | 8 | 86 | 52 | ||||||||||||||||||||
Net cash used for investing activities | (721 | ) | (457 | ) | (2,005 | ) | (1,484 | ) | ||||||||||||||||
FINANCING | ||||||||||||||||||||||||
Debt increase (decrease) - net | 189 | 509 | 914 | 490 | ||||||||||||||||||||
Issuances of common stock | 31 | 49 | 195 | 183 | ||||||||||||||||||||
Purchases of common stock | (179 | ) | (314 | ) | (937 | ) | (587 | ) | ||||||||||||||||
Cash dividends - Praxair, Inc. shareholders | (149 | ) | (137 | ) | (602 | ) | (551 | ) | ||||||||||||||||
Excess tax benefit on stock option exercises | 6 | 13 | 53 | 51 | ||||||||||||||||||||
Noncontrolling interest transactions and other | 1 | 12 | (3 | ) | (5 | ) | ||||||||||||||||||
Net cash provided by (used for) financing activities | (101 | ) | 132 | (380 | ) | (419 | ) | |||||||||||||||||
Effect of exchange rate changes on cash and | ||||||||||||||||||||||||
cash equivalents | (4 | ) | 3 | (19 | ) | (8 | ) | |||||||||||||||||
Change in cash and cash equivalents | (35 | ) | (32 | ) | 51 | (6 | ) | |||||||||||||||||
Cash and cash equivalents, beginning-of-period | 125 | 71 | 39 | 45 | ||||||||||||||||||||
Cash and cash equivalents, end-of-period | $ | 90 | $ | 39 | $ | 90 | $ | 39 | ||||||||||||||||
PRAXAIR, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||||||
(Millions of dollars) | ||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||
Quarter Ended | Year to Date | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
SALES | ||||||||||||||||||||||||
North America (a) | $ | 1,399 | $ | 1,310 | $ | 5,531 | $ | 5,111 | ||||||||||||||||
Europe (b) | 380 | 339 | 1,448 | 1,334 | ||||||||||||||||||||
South America (c) | 532 | 516 | 2,308 | 1,970 | ||||||||||||||||||||
Asia (d) | 325 | 308 | 1,317 | 1,133 | ||||||||||||||||||||
Surface Technologies (e) | 160 | 150 | 648 | 568 | ||||||||||||||||||||
Total sales | $ | 2,796 | $ | 2,623 | $ | 11,252 | $ | 10,116 | ||||||||||||||||
OPERATING PROFIT | ||||||||||||||||||||||||
North America (a) | $ | 364 | $ | 311 | 1,372 | 1,196 | ||||||||||||||||||
Europe (b) | 61 | 68 | 260 | 267 | ||||||||||||||||||||
South America (c) | 118 | 114 | 530 | 454 | ||||||||||||||||||||
Asia (d) | 52 | 50 | 205 | 166 | ||||||||||||||||||||
Surface Technologies (e) | 24 | 20 | 102 | 84 | ||||||||||||||||||||
Segment operating profit | 619 | 563 | 2,469 | 2,167 | ||||||||||||||||||||
Cost reduction program and other charges | (1 | ) | (58 | ) | (1 | ) | (85 | ) | ||||||||||||||||
Total operating profit | $ | 618 | $ | 505 | $ | 2,468 | $ | 2,082 | ||||||||||||||||
(a) | North American 2011 sales for the quarter and year-to-date periods decreased $2 million and increased $38 million, respectively, due to higher cost pass-through, with minimal impact on operating profit compared to 2010. Sales for the quarter and year-to-date periods decreased $11 million and increased $60 million, respectively, due to currency effects versus 2010. | |||
(b) | European 2011 sales for the quarter and year-to-date periods increased $1 million and $6 million, respectively, due to cost pass-through, with minimal impact on operating profit compared to 2010. Sales for the quarter and year-to-date periods increased $2 million and $65 million, respectively, due to currency effects versus 2010. | |||
(c) | South American 2011 sales for the quarter and year-to-date periods increased $8 million and $27 million, respectively, due to higher cost pass-through, with minimal impact on operating profit compared to 2010. Sales for the quarter and year-to-date periods decreased $25 million and increased $88 million, respectively, due to currency effects versus 2010. | |||
(d) | Asian 2011 sales for the quarter and year-to-date periods increased $1 million and $22 million, respectively, due to higher cost pass-through, with minimal impact on operating profit compared to 2010. Sales for the quarter and year-to-date periods decreased $1 million and increased $30 million, respectively, due to currency effects versus 2010. | |||
(e) | Surface Technologies 2011 sales for the quarter and year-to-date periods increased $2 million and $8 million, respectively, due to higher cost pass-through, with minimal impact on operating profit compared to 2010. Sales for the quarter and year-to-date periods increased $1 million and $17 million, respectively due to currency effects versus 2010. | |||
PRAXAIR, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL SUMMARY | ||||||||||||||||||||||||||||||||
(Millions of dollars, except per share data) | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||||||||||
Q4 (b) | Q3 | Q2 | Q1 | Q4 (b) | Q3 | Q2 | Q1 (b) | |||||||||||||||||||||||||
FROM THE INCOME STATEMENT | ||||||||||||||||||||||||||||||||
Sales | $ 2,796 | $ 2,896 | $ 2,858 | $ 2,702 | $ 2,623 | $ 2,538 | $ 2,527 | $ 2,428 | ||||||||||||||||||||||||
Cost of sales | 1,598 | 1,684 | 1,640 | 1,536 | 1,492 | 1,444 | 1,437 | 1,381 | ||||||||||||||||||||||||
Selling, general and administrative | 315 | 307 | 309 | 308 | 301 | 299 | 302 | 294 | ||||||||||||||||||||||||
Depreciation and amortization | 249 | 256 | 254 | 244 | 240 | 227 | 230 | 228 | ||||||||||||||||||||||||
Research and development | 23 | 22 | 23 | 22 | 23 | 19 | 19 | 18 | ||||||||||||||||||||||||
Cost reduction program and other charges - net | 1 | - | - | - | 58 | - | - | 27 | ||||||||||||||||||||||||
Other income (expenses) – net | 8 | 5 | (5) | (1) | (4) | 2 | 8 | (1) | ||||||||||||||||||||||||
Operating profit | 618 | 632 | 627 | 591 | 505 | 551 | 547 | 479 | ||||||||||||||||||||||||
Interest expense - net | 38 | 36 | 36 | 35 | 28 | 29 | 29 | 32 | ||||||||||||||||||||||||
Income taxes | 156 | 166 | 163 | 156 | 346 | 146 | 145 | 131 | ||||||||||||||||||||||||
Income from equity investments | 7 | 13 | 11 | 9 | 11 | 12 | 8 | 7 | ||||||||||||||||||||||||
Net income (including noncontrolling interests) | 431 | 443 | 439 | 409 | 142 | 388 | 381 | 323 | ||||||||||||||||||||||||
Less: noncontrolling interests | (11) | (14) | (14) | (11) | (9) | (11) | (10) | (9) | ||||||||||||||||||||||||
Net income - Praxair, Inc. | $ 420 | $ 429 | $ 425 | $ 398 | $ 133 | $ 377 | $ 371 | $ 314 | ||||||||||||||||||||||||
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||
Diluted earnings per share | $ 1.38 | $ 1.40 | $ 1.38 | $ 1.29 | $ 0.43 | $ 1.21 | $ 1.19 | $ 1.01 | ||||||||||||||||||||||||
Cash dividends per share | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 | ||||||||||||||||||||||||
Diluted weighted average shares outstanding (000's) | 303,700 | 305,623 | 308,253 | 308,595 | 310,733 | 311,608 | 311,109 | 311,159 | ||||||||||||||||||||||||
FROM THE BALANCE SHEET | ||||||||||||||||||||||||||||||||
Total debt | $ 6,562 | $ 6,310 | $ 6,119 | $ 5,838 | $ 5,557 | $ 5,077 | $ 5,026 | $ 5,404 | ||||||||||||||||||||||||
Total capital | 12,579 | 12,430 | 12,889 | 12,375 | 11,702 | 11,407 | 10,793 | 11,134 | ||||||||||||||||||||||||
Debt-to-capital ratio (a) | 52.2% | 50.8% | 47.5% | 47.2% | 47.5% | 44.5% | 46.6% | 48.5% | ||||||||||||||||||||||||
FROM THE STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||||||||||
Cash flow from operations | 791 | $ 732 | $ 573 | $ 359 | $ 290 | $ 596 | $ 536 | $ 483 | ||||||||||||||||||||||||
Capital expenditures | 572 | 458 | 433 | 334 | 451 | 324 | 325 | 288 | ||||||||||||||||||||||||
Acquisitions | 195 | 19 | 80 | - | 14 | 114 | 16 | 4 | ||||||||||||||||||||||||
Cash dividends | 149 | 150 | 151 | 152 | 137 | 139 | 137 | 138 | ||||||||||||||||||||||||
OTHER INFORMATION | ||||||||||||||||||||||||||||||||
After-tax return on capital (ROC) (a) | 14.5% | 14.8% | 14.7% | 14.4% | 14.4% | 14.7% | 14.7% | 13.6% | ||||||||||||||||||||||||
Return on Praxair, Inc. shareholders' equity (ROE) (a) | 29.5% | 28.3% | 27.1% | 26.6% | 26.4% | 26.4% | 27.4% | 25.4% | ||||||||||||||||||||||||
Adjusted earnings before interest, taxes, depreciation and | ||||||||||||||||||||||||||||||||
amortization (adjusted EBITDA) (a) | $875 | $901 | $892 | $844 | $814 | $790 | $785 | $741 | ||||||||||||||||||||||||
Debt-to-adjusted EBITDA ratio (a) | 1.8 | 1.7 | 1.7 | 1.7 | 1.6 | 1.6 | 1.7 | 1.8 | ||||||||||||||||||||||||
Number of employees | 26,184 | 25,793 | 25,678 | 25,482 | 26,261 | 26,025 | 25,877 | 26,010 | ||||||||||||||||||||||||
SEGMENT DATA | ||||||||||||||||||||||||||||||||
SALES | ||||||||||||||||||||||||||||||||
North America | $ 1,399 | $ 1,427 | $ 1,371 | $ 1,334 | $ 1,310 | $ 1,282 | $ 1,281 | $ 1,238 | ||||||||||||||||||||||||
Europe | 380 | 358 | 367 | 343 | 339 | 322 | 335 | 338 | ||||||||||||||||||||||||
South America | 532 | 607 | 611 | 558 | 516 | 506 | 490 | 458 | ||||||||||||||||||||||||
Asia | 325 | 341 | 341 | 310 | 308 | 287 | 280 | 258 | ||||||||||||||||||||||||
Surface Technologies | 160 | 163 | 168 | 157 | 150 | 141 | 141 | 136 | ||||||||||||||||||||||||
Total sales | $ 2,796 | $ 2,896 | $ 2,858 | $ 2,702 | $ 2,623 | $ 2,538 | $ 2,527 | $ 2,428 | ||||||||||||||||||||||||
OPERATING PROFIT | ||||||||||||||||||||||||||||||||
North America | $ 364 | $ 350 | $ 336 | $ 322 | $ 311 | $ 314 | $ 294 | $ 277 | ||||||||||||||||||||||||
Europe | 61 | 65 | 69 | 65 | 68 | 59 | 73 | 67 | ||||||||||||||||||||||||
South America | 118 | 140 | 139 | 133 | 114 | 117 | 114 | 109 | ||||||||||||||||||||||||
Asia | 52 | 51 | 56 | 46 | 50 | 38 | 44 | 34 | ||||||||||||||||||||||||
Surface Technologies | 24 | 26 | 27 | 25 | 20 | 23 | 22 | 19 | ||||||||||||||||||||||||
Segment operating profit | 619 | 632 | 627 | 591 | 563 | 551 | 547 | 506 | ||||||||||||||||||||||||
Cost reduction program and other charges - net | (1) | - | (58) | - | (27) | |||||||||||||||||||||||||||
Total operating profit | $ 618 | $ 632 | $ 627 | $ 591 | $ 505 | $ 551 | $ 547 | $ 479 |
(a) | Non-GAAP measure, see Appendix. |
(b) | The fourth quarter 2011 includes: (i) a net gain of $39 million ($37 million after-tax and noncontrolling interests, or $0.12 per diluted share) related to a gain on acquisition; and (ii) a pre-tax charge of $40 million ($31 million after-tax, or $0.10 per diluted share) related to the 2011 cost reduction program. The fourth quarter 2010 includes: (i) a net tax charge of $250 million, or $0.80 per diluted share, related to a Spanish income tax settlement; (ii) a pre-tax charge of $58 million ($40 million after-tax, or $0.13 per diluted share) related to the U.S. Homecare divestiture; and (iii) a net repatriation tax benefit of $35 million, or $0.11 per diluted share. The first quarter 2010 includes a charge of $27 million ($26 million after-tax, or $0.08 per diluted share), related to the Venezuela currency devaluation. Also, see the appendix for non-GAAP measures which exclude the impact of these items. |
APPENDIX | |
NON-GAAP MEASURES | |
(Millions of dollars, except per share data) | |
(UNAUDITED) | |
The following non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management use to help evaluate the company’s financing leverage, return on net assets employed and operating performance. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. Adjusted amounts exclude the impact of the 2011 fourth quarter gain on acquisition and cost reduction program while the 2010 fourth quarter excludes the Spanish income tax settlement, business divestiture and repatriation tax benefit and first quarter 2010 excludes the Venezuela currency devaluation which helps investors understand underlying performance on a comparable basis. |
2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year | Q4 | Q3 | Q2 | Q1 | Year | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt to Capital Ratio - The debt-to-capital ratio is a measure used by investors, financial analysts and management to provide a measure of financial leverage and insights into how the company is financing its operations. |
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|
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Total debt | $ | 6,562 | $ | 6,310 | $ | 6,119 | $ | 5,838 | $ | 5,557 | $ | 5,077 | $ | 5,026 | $ | 5,404 | ||||||||||||||||||||||||||||||||||||||||||||||
Equity and redeemable noncontrolling interests: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | 220 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Praxair, Inc. shareholders' equity | 5,488 | 5,753 | 6,400 | 6,165 | 5,792 | 5,991 | 5,452 | 5,398 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | 309 | 368 | 370 | 372 | 353 | 339 | 315 | 332 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity and redeemable noncontrolling interests | 6,017 | 6,121 | 6,770 | 6,537 | 6,145 | 6,330 | 5,767 | 5,730 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital | $ | 12,579 | $ | 12,430 | $ | 12,889 | $ | 12,375 | $ | 11,702 | $ | 11,407 | $ | 10,793 | $ | 11,134 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt-to-capital ratio | 52.2 | % | 50.8 | % | 47.5 | % | 47.2 | % | 47.5 | % | 44.5 | % | 46.6 | % | 48.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||
After -tax return on Capital (ROC) - After-tax return on capital is a measure used by investors, financial analysts and management to evaluate the return on net assets employed in the business. ROC measures the after-tax operating profit that the company was able to generate with the investments made by all parties in the business (debt, noncontrolling interests and Praxair, Inc. shareholders’ equity). |
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Adjusted operating profit (a) | $ | 2,469 | $ | 619 | $ | 632 | $ | 627 | $ | 591 | $ | 2,167 | $ | 563 | $ | 551 | $ | 547 | $ | 506 | ||||||||||||||||||||||||||||||||||||||||||
Less: adjusted income taxes (a) | (647 | ) | (162 | ) | (166 | ) | (163 | ) | (156 | ) | (572 | ) | (149 | ) | (146 | ) | (145 | ) | (132 | ) | ||||||||||||||||||||||||||||||||||||||||||
Add: Repatriation tax benefit | 35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: tax benefit on interest expense | (41 | ) | (11 | ) | (10 | ) | (10 | ) | (10 | ) | (33 | ) | (8 | ) | (8 | ) | (8 | ) | (9 | ) | ||||||||||||||||||||||||||||||||||||||||||
Add: income from equity investments | 40 | 7 | 13 | 11 | 9 | 38 | 11 | 12 | 8 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net operating profit after-tax (NOPAT) | $ | 1,821 | $ | 453 | $ | 469 | $ | 465 | $ | 434 | $ | 1,600 | $ | 417 | $ | 409 | $ | 402 | $ | 372 | ||||||||||||||||||||||||||||||||||||||||||
Beginning capital | $ | 12,430 | $ | 12,889 | $ | 12,375 | $ | 11,702 | $ | 11,407 | $ | 10,793 | $ | 11,134 | $ | 10,703 | ||||||||||||||||||||||||||||||||||||||||||||||
Ending capital | $ | 12,579 | $ | 12,430 | $ | 12,889 | $ | 12,375 | $ | 11,702 | $ | 11,407 | $ | 10,793 | $ | 11,134 | ||||||||||||||||||||||||||||||||||||||||||||||
Average capital | $ | 12,504 | $ | 12,659 | $ | 12,632 | $ | 12,039 | $ | 11,555 | $ | 11,100 | $ | 10,964 | $ | 10,919 | ||||||||||||||||||||||||||||||||||||||||||||||
Average capital - 5 quarter average | $ | 12,395 | $ | 11,148 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ROC % | 14.7 | % | 3.6 | % | 3.7 | % | 3.7 | % | 3.6 | % | 14.4 | % | 3.6 | % | 3.7 | % | 3.7 | % | 3.4 | % | ||||||||||||||||||||||||||||||||||||||||||
ROC % (annualized) | 14.7 | % | 14.5 | % | 14.8 | % | 14.7 | % | 14.4 | % | 14.4 | % | 14.4 | % | 14.7 | % | 14.7 | % | 13.6 | % | ||||||||||||||||||||||||||||||||||||||||||
Return on Praxair, Inc. Shareholder's equity (ROE) - Return on Praxair, Inc. shareholders' equity is a measure used by investors, financial analysts and management to evaluate operating performance from a Praxair shareholder perspective. ROE measures the net income attributable to Praxair, Inc. that the company was able to generate with the money shareholders have invested. |
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Adjusted net income - Praxair, Inc. (a) | $ | 1,666 | $ | 414 | $ | 429 | $ | 425 | $ | 398 | $ | 1,476 | $ | 388 | $ | 377 | $ | 371 | $ | 340 | ||||||||||||||||||||||||||||||||||||||||||
Beginning Praxair, Inc. shareholders' equity | $ | 5,753 | $ | 6,400 | $ | 6,165 | $ | 5,792 | $ | 5,991 | $ | 5,452 | $ | 5,398 | $ | 5,315 | ||||||||||||||||||||||||||||||||||||||||||||||
Ending Praxair, Inc. shareholders' equity | $ | 5,488 | $ | 5,753 | $ | 6,400 | $ | 6,165 | $ | 5,792 | $ | 5,991 | $ | 5,452 | $ | 5,398 | ||||||||||||||||||||||||||||||||||||||||||||||
Average Praxair, Inc. shareholders' equity | $ | 5,621 | $ | 6,077 | $ | 6,283 | $ | 5,979 | $ | 5,892 | $ | 5,722 | $ | 5,425 | $ | 5,357 | ||||||||||||||||||||||||||||||||||||||||||||||
Average Praxair shareholders' equity - 5 quarter average | $ | 5,920 | $ | 5,590 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ROE % | 28.2 | % | 7.4 | % | 7.1 | % | 6.8 | % | 6.7 | % | 26.4 | % | 6.6 | % | 6.6 | % | 6.8 | % | 6.3 | % | ||||||||||||||||||||||||||||||||||||||||||
ROE % (annualized) | 28.2 | % | 29.5 | % | 28.3 | % | 27.1 | % | 26.6 | % | 26.4 | % | 26.4 | % | 26.4 | % | 27.4 | % | 25.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA and Debt-to-Adjusted EBITDA Ratio- These measures are used by investors, financial analysts and management to assess a company's ability to meet it's financial obligations. |
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Adjusted net income - Praxair, Inc. (a) | $ | 1,666 | $ | 414 | $ | 429 | $ | 425 | $ | 398 | $ | 1,476 | $ | 388 | $ | 377 | $ | 371 | $ | 340 | ||||||||||||||||||||||||||||||||||||||||||
Add: noncontrolling interests (a) | 51 | 12 | 14 | 14 | 11 | 39 | 9 | 11 | 10 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Add: interest expense - net | 145 | 38 | 36 | 36 | 35 | 118 | 28 | 29 | 29 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Add: adjusted income taxes (a) | 647 | 162 | 166 | 163 | 156 | 572 | 149 | 146 | 145 | 132 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Add: depreciation and amortization | 1,002 | 249 | 256 | 254 | 244 | 925 | 240 | 227 | 230 | 228 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 3,511 | $ | 875 | $ | 901 | $ | 892 | $ | 844 | $ | 3,130 | $ | 814 | $ | 790 | $ | 785 | $ | 741 | ||||||||||||||||||||||||||||||||||||||||||
Beginning total debt | $ | 6,310 | $ | 6,119 | $ | 5,838 | $ | 5,557 | $ | 5,077 | $ | 5,026 | $ | 5,404 | $ | 5,055 | ||||||||||||||||||||||||||||||||||||||||||||||
Ending total debt | $ | 6,562 | $ | 6,310 | $ | 6,119 | $ | 5,838 | $ | 5,557 | $ | 5,077 | $ | 5,026 | $ | 5,404 | ||||||||||||||||||||||||||||||||||||||||||||||
Average total debt | $ | 6,436 | $ | 6,215 | $ | 5,979 | $ | 5,698 | $ | 5,317 | $ | 5,052 | $ | 5,215 | $ | 5,230 | ||||||||||||||||||||||||||||||||||||||||||||||
Average total debt - 5 quarter average | $ | 6,077 | $ | 5,224 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt-to-adjusted EBITDA ratio | 1.7 | 7.4 | 6.9 | 6.7 | 6.8 | 1.7 | 6.5 | 6.4 | 6.6 | 7.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt-to-adjusted EBITDA ratio (annualized) | 1.7 | 1.8 | 1.7 | 1.7 | 1.7 | 1.7 | 1.6 | 1.6 | 1.7 | 1.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | The following table presents adjusted amounts for Operating Profit and Operating Profit Margin, Income Taxes, Effective Tax Rate, Noncontrolling Interest, Net income - Praxair, Inc., and Diluted EPS for the Fourth Quarter and full year 2011 as well as the First, Fourth Quarter and full year of 2010. Additionally, this table presents the percentage change in Diluted EPS Guidance for the full year 2012. |
Fourth | Fourth | First | ||||||||||||||||||||||||||||
Year | Quarter | Year | Quarter | Quarter | ||||||||||||||||||||||||||
2011 | 2011 | 2010 | 2010 | 2010 | ||||||||||||||||||||||||||
Adjusted Operating Profit and Operating Profit Margin |
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Reported operating profit | $ | 2,468 | $ | 618 | $ | 2,082 | $ | 505 | $ | 479 | ||||||||||||||||||||
Less: Gain on acquisition | (39 | ) | (39 | ) | - | - | - | |||||||||||||||||||||||
Add: Cost reduction program | 40 | 40 | - | - | - | |||||||||||||||||||||||||
Add: U.S. Homecare divestiture | - | - | 58 | 58 | - | |||||||||||||||||||||||||
Add: Venezuela currency devaluation | - | - | 27 | - | 27 | |||||||||||||||||||||||||
Total adjustments | 1 | 1 | 85 | 58 | 27 | |||||||||||||||||||||||||
Adjusted operating profit | $ | 2,469 | $ | 619 | $ | 2,167 | $ | 563 | $ | 506 | ||||||||||||||||||||
Percentage change from 2010 fourth quarter | 10 | % | ||||||||||||||||||||||||||||
Percentage change from 2010 year | 14 | % | ||||||||||||||||||||||||||||
Reported sales | $ | 11,252 | $ | 2,796 | $ | 10,116 | $ | 2,623 | $ | 2,428 | ||||||||||||||||||||
Adjusted operating profit margin | 21.9 | % | 22.1 | % | 21.4 | % | 21.5 | % | 20.8 | % | ||||||||||||||||||||
Adjusted Income Taxes |
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Reported income taxes | $ | 641 | $ | 156 | $ | 768 | $ | 346 | $ | 131 | ||||||||||||||||||||
Add: Cost reduction program | 9 | 9 | - | - | - | |||||||||||||||||||||||||
Less: Gain on acquisition | (3 | ) | (3 | ) | - | - | - | |||||||||||||||||||||||
Less: Spanish income tax settlement | - | - | (250 | ) | (250 | ) | - | |||||||||||||||||||||||
Add: U.S. Homecare divestiture | - | - | 18 | 18 | - | |||||||||||||||||||||||||
Add: Repatriation tax benefit | - | - | 35 | 35 | - | |||||||||||||||||||||||||
Add: Venezuela currency devaluation | - | - | 1 | - | 1 | |||||||||||||||||||||||||
Total adjustments | 6 | 6 | (196 | ) | (197 | ) | 1 | |||||||||||||||||||||||
Adjusted income taxes | $ | 647 | $ | 162 | $ | 572 | $ | 149 | $ | 132 | ||||||||||||||||||||
Adjusted Effective Tax Rate |
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Reported income before income taxes and equity investments | $ | 2,323 | $ | 580 | $ | 1,964 | $ | 477 | $ | 447 | ||||||||||||||||||||
Less: Gain on acquisition | (39 | ) | (39 | ) | - | - | - | |||||||||||||||||||||||
Add: Cost reduction program | 40 | 40 | - | - | - | |||||||||||||||||||||||||
Add: U.S. Homecare divestiture | - | - | 58 | 58 | - | |||||||||||||||||||||||||
Add: Venezuela currency devaluation | - | - | 27 | - | 27 | |||||||||||||||||||||||||
Total adjustments | 1 | 1 | 85 | 58 | 27 | |||||||||||||||||||||||||
Adjusted income before income taxes and equity investments | $ | 2,324 | $ | 581 | $ | 2,049 | $ | 535 | $ | 474 | ||||||||||||||||||||
Adjusted income taxes (above) | $ | 647 | $ | 162 | $ | 572 | $ | 149 | $ | 132 | ||||||||||||||||||||
Adjusted effective tax rate | 28 | % | 28 | % | 28 | % | 28 | % | 28 | % | ||||||||||||||||||||
Adjusted Noncontrolling interest |
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Reported noncontrolling interest | $ | 50 | $ | 11 | ||||||||||||||||||||||||||
Add: Gain on acquisition | 1 | 1 | ||||||||||||||||||||||||||||
Adjusted noncontrolling interest | $ | 51 | $ | 12 | ||||||||||||||||||||||||||
Adjusted Net Income - Praxair, Inc. |
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Reported net income - Praxair, Inc. | $ | 1,672 | $ | 420 | $ | 1,195 | $ | 133 | $ | 314 | ||||||||||||||||||||
Less: Gain on acquisition |
(37 | ) | (37 | ) | - | - | - | |||||||||||||||||||||||
Add: Cost reduction program | 31 | 31 | - | - | - | |||||||||||||||||||||||||
Add: Spanish income tax settlement | - | - | 250 | 250 | - | |||||||||||||||||||||||||
Add: U.S. Homecare divestiture | - | - | 40 | 40 | - | |||||||||||||||||||||||||
Less: Repatriation tax benefit |
- | - | (35 | ) | (35 | ) | - | |||||||||||||||||||||||
Add: Venezuela currency devaluation and other charges (b) |
- | - | 26 | - | 26 | |||||||||||||||||||||||||
Total adjustments | (6 | ) | (6 | ) | 281 | 255 | 26 | |||||||||||||||||||||||
Adjusted net income - Praxair, Inc. | $ | 1,666 | $ | 414 | $ | 1,476 | $ | 388 | $ | 340 | ||||||||||||||||||||
Percentage change from 2010 fourth quarter | 7 | % | ||||||||||||||||||||||||||||
Percentage change from 2010 year | 13 | % | ||||||||||||||||||||||||||||
Adjusted Diluted EPS |
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Reported diluted EPS | $ | 5.45 | $ | 1.38 | $ | 3.84 | $ | 0.43 | $ | 1.01 | ||||||||||||||||||||
Less: Gain on acquisition | (0.12 | ) | (0.12 | ) | - | - | - | |||||||||||||||||||||||
Add: Cost reduction program | 0.10 | 0.10 | - | - | - | |||||||||||||||||||||||||
Add: Spanish income tax settlement | - | - | 0.80 | 0.80 | - | |||||||||||||||||||||||||
Add: U.S. Homecare divestiture | - | - | 0.13 | 0.13 | - | |||||||||||||||||||||||||
Less: Repatriation tax benefit | - | - | (0.11 | ) | (0.11 | ) | - | |||||||||||||||||||||||
Add: Venezuela currency devaluation | - | - | 0.08 | - | 0.08 | |||||||||||||||||||||||||
Total adjustments | (0.02 | ) | (0.02 | ) | 0.90 | 0.82 | 0.08 | |||||||||||||||||||||||
Adjusted diluted EPS | $ | 5.43 | $ | 1.36 | $ | 4.74 | $ | 1.25 | $ | 1.09 | ||||||||||||||||||||
Percentage change from 2010 fourth quarter | 9 | % | ||||||||||||||||||||||||||||
Percentage change from 2010 year | 15 | % | ||||||||||||||||||||||||||||
Percentage Change in Adjusted Full Year and First Quarter 2012 Diluted EPS Guidance |
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Full Year 2012 | First Quarter 2012 | |||||||||||||||||||||||
Low End | High End | Low End | High End | |||||||||||||||||||||
2012 diluted EPS guidance | $ | 5.70 | $ | 5.90 | $ | 1.33 | $ | 1.38 | ||||||||||||||||
Add: estimated negative currency impact | 0.25 | 0.25 | 0.07 | 0.07 | ||||||||||||||||||||
2012 diluted EPS guidance, excluding currency impact | $ | 5.95 | $ | 6.15 | $ | 1.40 | $ | 1.45 | ||||||||||||||||
2011 Adjusted diluted EPS (above) | $ | 5.43 | $ | 5.43 | $ | 1.29 | $ | 1.29 | ||||||||||||||||
Percentage change from 2011 | 5 | % | 9 | % | 3 | % | 7 | % | ||||||||||||||||
Percentage change from 2011, excluding currency impact | 10 | % | 13 | % | 9 | % | 12 | % |