Praxair, Inc. (NYSE:PX) reported second-quarter net income and diluted earnings per share of USD308 million and USD1.06, respectively.
These results include the impact of a USD146 million pre-tax charge, or USD0.39 of diluted earnings per share. This charge was related to cost reduction actions taken in response to lower volumes resulting from economic slowdown in emerging markets and energy related end-markets. Excluding the charge, adjusted net income and diluted earnings per share were USD420 million and USD1.45, respectively.
Praxair´s results in the second quarter, as compared to the prior year, were challenged by negative impacts from foreign currency translation, as the US dollar remained strong against most foreign currencies. Sales in the second quarter were USD2,738 million, 12 percent below the prior-year quarter, primarily due to the impact of negative currency translation of nine percent and lower cost pass-through of two percent. Organic sales were one percent lower than the prior-year quarter as positive price and new project contribution were offset by weaker underlying industrial activity in Brazil and China and from weaker metals, energy and manufacturing in the United States.
Reported operating profit in the second quarter was USD480 million. Adjusted operating profit of USD626 million was one percent below the prior-year quarter, excluding currency effects. Adjusted operating profit as a percentage of sales grew to 22.9 percent and the adjusted EBITDA margin grew to 33.4 percent primarily due to price, strong cost control and productivity gains.
Praxair, a Fortune 250 company with 2014 sales of USD12.3 billion, is the largest industrial gases company in North and South America and one of the largest worldwide. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings.