Praxair, Inc. reported first-quarter net income and diluted earnings per share of $448m and $1.51, 8% and 9% above the prior-year quarter, respectively.
Sales in the first quarter were $3,026m, 5% above the prior-year quarter, and up 9%, excluding foreign currency. Organic sales grew 6% driven by higher on-site volumes from new project start-ups primarily in North America and Asia. By end-market, sales growth was strongest for energy, chemicals, and food and beverage customers, as compared to the prior-year quarter. Acquisitions contributed 2% growth in the quarter.
Operating profit in the first quarter was $675m, 8% above the prior-year quarter. Excluding negative currency translation impacts, operating profit rose 12% driven by higher volumes, higher pricing, acquisitions and productivity gains. Operating profit as a percentage of sales was a strong 22.3% and the EBITDA margin grew to 32.0%.
First-quarter cash flow from operations was $536m and capital expenditures were $393m, primarily for new production plants under long-term contracts with customers. Acquisition expenditures were $124m, related primarily to Italian industrial gas and US packaged gas businesses. The company paid dividends of $191m and repurchased $237m of stock, net of issuances. During the quarter, the company issued €600m of 6-year notes with a 1.5% coupon. The after-tax return-on-capital and return on equity for the quarter were 12.6% and 28.7%, respectively.
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