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August 20, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Praxair remains strong ahead of Linde merger

Praxair Inc. reported third-quarter net income of $419 million, reflecting transaction and other costs of $14 million after-tax, primarily related to its proposed merger with Linde AG. Excluding that charge, adjusted net income was $433 million.

The global industrial gases company, headquartered in Danbury, said its third-quarter sales were $2.9 billion, 8 percent above the prior-year quarter. After adjusting for positive currency translation and cost pass-through, sales grew 6 percent. Reported operating profit in the third quarter was $626 million, 26 percent above the prior-year quarter. 

Praxair generated third-quarter cash flow from operations of $794 million, 27 percent of sales. After capital expenditures of $320 million, free cash flow was $474 million, up 15 percent over the prior-year quarter. The company paid $225 million in dividends and net debt decreased by $202 million.

“The third quarter extended prior trends with growing demand in North America, Europe and Asia, but continued weakness in South America,” said Chairman and CEO Steve Angel. “Additionally, during the third quarter, Praxair shareholders approved our business combination with Linde AG with 99 percent of votes cast in favor of the merger.”

That merger remains subject to other transaction-closing conditions, including successfully completing Linde plc’s exchange offer for Linde AG shares, and the receipt of all regulatory approvals.