Dividend Increase 004: Praxair(Nyse:PX)

 

January 29, 2016

  • Full-year sales of $10.8 billion and adjusted EPS of $5.80
  • Full-year adjusted EBITDA and operating margins grew to record levels of 33.8% and 23.1%, respectively
  • Strong full-year operating cash flow of $2.7 billion, 25% of sales; free cash flow of $1.1 billion
  • Announced 5% dividend increase; 23rd consecutive annual increase
  • $1.5 billion returned to shareholders in 2015 through dividends and net share repurchases
  • Return on capital 12.6%; return on equity 34.6%
  • Fourth-quarter sales of $2.6 billion; EPS $1.47
  • Full-year 2016 EPS guidance of $5.30 to $5.70, -2% to +5%, ex-FX

DANBURY, Conn., January 29, 2016 — Praxair, Inc. (NYSE: PX) reported fourth-quarter net income and diluted earnings per share of $422 million and $1.47, respectively.

Sales in the fourth quarter were $2,595 million, 13% below the prior-year quarter, primarily due to the impacts of negative currency translation and lower cost pass-through, which reduced sales by 10% and 2%, respectively.  Underlying sales were 1% below the prior-year quarter as growth from higher price, new project start-ups and acquisitions was offset by lower volumes due to weaker industrial activity in Brazil and China and in the metals and manufacturing end-markets in North America.

Operating profit in the fourth quarter was $624 million and, excluding currency translation effects, grew 5% above the prior-year quarter.  Operating profit as a percentage of sales grew to 24.0% and the EBITDA margin grew to 35.1%.

Fourth-quarter operating cash flow of $791 million funded $387 million of capital expenditures and $204 million of dividends.

For the full year of 2015, reported net income was $1,547 million and diluted earnings per share was $5.35.  On an adjusted basis, full-year net income was $1,677 million and diluted earnings per share was $5.80.

Full-year sales were $10,776, 12% below 2014 due to the impacts of negative currency translation and lower cost pass-through, primarily natural gas.  Underlying sales were comparable to the prior year as growth from positive price, new project start-ups and acquisitions was offset by lower base volumes in Brazil and China due to weaker underlying industrial activity and in the North American metals, upstream energy and manufacturing end-markets.  Reported operating profit was $2,321 million.  Adjusted operating profit of $2,493 million was 1% above 2014, excluding negative currency translation.

For full year 2015, the company generated strong operating cash flow of $2,682 million, 25% of sales. After capital expenditures of $1,541 million, free cash flow was $1,141 million.  The company invested $82 million in acquisitions, primarily several U.S. packaged gas distributors.  The company paid dividends of $819 million and repurchased $637 million of stock, net of issuances, while holding net debt steady.   After-tax return on capital and return on equity for the year were 12.6% and 34.6%, respectively.

Commenting on the financial results and business outlook, Chairman and Chief Executive Officer Steve Angel said, “2015 was a challenging year from a macro-economic perspective, but Praxair employees again delivered high-quality results.  Full-year operating margin of 23.1% and EBITDA margin of 33.8% grew to record levels. Operating cash flow of $2.7 billion was strong and represented 25% of sales, and free cash flow was $1.1 billion.  As a result, we increased our dividend for the 23rd consecutive year.


 

 

Azioni in portafoglio :12

Dividendi incassati :9.73

Nuovo dividendo annuo stimato :20.24

Yoc :1.54%

Payback :0.74%


 

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