Praxair Reports Second-Quarter 2013 Results

Praxair, Inc. (NYSE: PX) reported second-quarter net income and diluted earnings per share of $445 million and $1.49, 4% and 5% above the prior-year quarter, respectively.

Sales in the second quarter were $3,014 million, 7% above the prior-year quarter. Strong volumes in Asia and South America were partially mitigated by lower volumes in Europe, while North American volumes were comparable to the prior year. Acquisitions contributed 3% growth in the quarter.

Operating profit in the second quarter was $665 million, up 5% compared to the prior-year quarter. The increase was driven by higher overall volumes, higher pricing and acquisitions, partially offset by negative currency translation effects. Operating profit as a percentage of sales was 22.1%.

Second-quarter cash flow from operations was $577 million and capital expenditures were $522 million, primarily for new production plants under long-term contracts with customers. The company invested $171 million in acquisitions of Dominion Technology Gases, Volgograd Oxygen Factory and several packaged gas distributors in the United States. The company paid dividends of $177 million and repurchased $152 million of stock, net of issuances. The debt-to-capital ratio was 57.9% and debt-to-EBITDA was 2.1x.* The after-tax return on capital and return on equity for the quarter were 13.0% and 28.4%, respectively.*

Commenting on the financial results and business outlook, Chairman, President and Chief Executive Officer Steve Angel said, "Our on-site business continued to be very strong with improving volumes to the energy, chemicals and metals industries across the Americas and Asia. Merchant deliveries continued to grow modestly with stable demand from healthcare and food and beverage. However, packaged gas demand weakened slightly due to poor overall business confidence and lower private and public spending on construction and capital projects.

In the near term, we expect these trends to continue with the strongest growth in chemicals, energy and emerging markets. Fortunately, we are well positioned geographically and have a strong backlog of large on-site projects being readied for start-up.”

For the third quarter of 2013, Praxair expects diluted earnings per share in the range of $1.48 to $1.53. For the full year of 2013, the company expects adjusted diluted earnings per share to be in the range of $5.90 to $6.00. These estimates are based on current foreign exchange rates for our international businesses, which on a weighted basis are 3% weaker than January when we initially gave earnings guidance for 2013. They also exclude an expected pension settlement charge in the third quarter of about $9 million. Praxair expects full-year sales in the area of $12 billion. Full-year capital expenditures are expected to be in the range of $1.8 to $2.0 billion, and the adjusted effective tax rate is forecasted to remain at about 28%.*

Following is additional detail on second-quarter 2013 results by segment.

In North America, second-quarter sales were $1,552 million up 11% from the prior-year quarter. The acquisitions of NuCO₂ and packaged gas distributors contributed 6% growth. Operating profit of $381 million grew 5% from the prior year primarily due to acquisitions and higher price.

In Europe, second-quarter sales were $382 million, in-line with the prior-year quarter. Underlying sales, excluding currency translation, were steady with the prior-year quarter due to higher pricing offset by lower volumes. Operating profit of $69 million, increased 1%, compared to the prior-year quarter, due to lower costs, productivity savings and price, partially offset by lower volumes.

In South America, second-quarter sales were $536 million, 3% higher than the prior-year quarter. Underlying sales, excluding currency translation, grew 9% with the strongest growth in the metals, healthcare and chemical markets. Operating profit was $123 million, up 12% versus the prior-year period, due to improved volumes and price.

Sales in Asia were $379 million in the quarter, up 9% from the prior year, driven by higher on-site and merchant sales in China, Korea and India, including new plant start-ups. Sales growth came primarily from metals, chemical and manufacturing customers. Operating profit was $61 million.

Praxair Surface Technologies had second-quarter sales of $165 million, 2% below the prior-year quarter. Sales were steady, excluding negative currency impact, as higher pricing offset weaker volumes of industrial coatings. Operating profit of $31 million grew 15% from the prior-year period due to lower costs from previous restructuring actions, productivity savings and higher pricing.

About Praxair

Praxair, Inc. is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2012 sales of $11 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair products, services and technologies are making our 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 about Praxair, Inc. is available at www.praxair.com.

*See the attachments for calculations of non-GAAP measures. Guidance for diluted earnings per share for the third quarter excludes the impact of a pension settlement charge expected to be recorded and guidance for adjusted diluted earnings per share for the full year 2013 also excludes the impact of the Venezuela currency devaluation recorded in the first quarter.

Attachments: Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information, Quarterly Financial Summary, Non-GAAP Reconciliations, Appendix: Non-GAAP Measures.

A teleconference on Praxair’s second-quarter results is being held this morning, July 24, at 11:00 am Eastern Time. The number is (617) 213-8831 -- Passcode: 19538377. The call also is available as a web-cast at www.praxair.com/investors. Materials to be used in the teleconference are also available at www.praxair.com/investors.

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; the impact of information technology system failures, network disruptions and breaches in data security; 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. Additionally, financial projections or estimates exclude the impact of special items which the company believes are not indicative of ongoing business performance. 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
	CONSOLIDATED STATEMENTS OF INCOME
	(Millions of dollars, except per share data)
	(UNAUDITED)
					Quarter Ended									Year to Date
					June 30,									June 30,
					2013				2012					2013				2012
	SALES				$	3,014			$	2,811				$	5,902			$	5,651
	Cost of sales					1,710				1,602					3,348				3,218
	Selling, general and administrative					344				310					681				645
	Depreciation and amortization					275				247					541				499
	Research and development					24				25					48				49
	Venezuela currency devaluation (a)					-				-					23				-
	Other income (expense) - net					4				9					4				23
	OPERATING PROFIT					665				636					1,265				1,263
	Interest expense - net					41				33					81				70
	INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS					624				603					1,184				1,193
	Income taxes					174				169					338				334
	INCOME BEFORE EQUITY INVESTMENTS					450				434					846				859
	Income from equity investments					11				10					21				17
	NET INCOME (INCLUDING NONCONTROLLING INTERESTS)					461				444					867				876
	Less: noncontrolling interests					(16	)			(15	)				(31	)			(28	)
	NET INCOME - PRAXAIR, INC.				$	445			$	429				$	836			$	848
	PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
	Basic earnings per share				$	1.50			$	1.43				$	2.82			$	2.84
	Diluted earnings per share				$	1.49			$	1.42				$	2.79			$	2.80
	Cash dividends				$	0.60			$	0.55				$	1.20			$	1.10
	WEIGHTED AVERAGE SHARES OUTSTANDING
	Basic shares outstanding (000's)					295,668				298,885					296,136				298,981
	Diluted shares outstanding (000's)					298,654				302,492					299,290				302,657

	(a)		The 2013 year to date period includes a charge of $23 million ($23 million after-tax, or $0.08 per diluted share) in the first quarter, related to the Venezuela currency devaluation. See appendix for non-GAAP measures which exclude the impact of this charge.

	PRAXAIR, INC. AND SUBSIDIARIES
	CONDENSED CONSOLIDATED BALANCE SHEETS
	(Millions of dollars)
	(UNAUDITED)
								June 30,					December 31,
								2013					2012
	ASSETS
	Cash and cash equivalents							$	102				$	157
	Accounts receivable - net								1,961					1,834
	Inventories								480					476
	Prepaid and other current assets								470					325
	TOTAL CURRENT ASSETS								3,013					2,792
	Property, plant and equipment - net								11,867					11,453
	Goodwill								3,159					2,507
	Other intangibles - net								576					173
	Other long-term assets								1,156					1,165
	TOTAL ASSETS							$	19,771				$	18,090
	LIABILITIES AND EQUITY
	Accounts payable							$	915				$	928
	Short-term debt								1,234					638
	Current portion of long-term debt								9					39
	Other current liabilities								832					874
	TOTAL CURRENT LIABILITIES								2,990					2,479
	Long-term debt								7,863					6,685
	Other long-term liabilities								2,374					2,253
	TOTAL LIABILITIES								13,227					11,417
	REDEEMABLE NONCONTROLLING INTERESTS								259					252
	EQUITY
	Praxair, Inc. shareholders' equity								5,928					6,064
	Noncontrolling interests								357					357
	TOTAL EQUITY								6,285					6,421
	TOTAL LIABILITIES AND EQUITY							$	19,771				$	18,090

	PRAXAIR, INC. AND SUBSIDIARIES
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	(Millions of dollars)
	(UNAUDITED)
					Quarter Ended									Year to Date
					June 30,									June 30,
					2013				2012					2013				2012
	OPERATIONS
	Net income - Praxair, Inc.				$	445			$	429				$	836			$	848
	Noncontrolling interests					16				15					31				28
	Net income (including noncontrolling interests)					461				444					867				876
	Adjustments to reconcile net income to net cash provided
	by operating activities:
	Venezuela currency devaluation					-				-					23				-
	Depreciation and amortization					275				247					541				499
	Accounts receivable					(3	)			96					(164	)			(47	)
	Inventory					(11	)			17					(27	)			(14	)
	Payables and accruals					(6	)			(23	)				(6	)			(118	)
	Pension contributions					(38	)			(3	)				(43	)			(109	)
	Deferred income taxes and other					(101	)			(53	)				(142	)			39
	Net cash provided by operating activities					577				725					1,049				1,127
	INVESTING
	Capital expenditures					(522	)			(564	)				(988	)			(1,047	)
	Acquisitions, net of cash acquired					(171	)			(39	)				(1,269	)			(51	)
	Divestitures and asset sales					7				7					38				71
	Net cash used for investing activities					(686	)			(596	)				(2,219	)			(1,027	)
	FINANCING
	Debt increase (decrease) - net					439				174					1,755				452
	Issuances of common stock					43				34					76				107
	Purchases of common stock					(195	)			(138	)				(345	)			(313	)
	Cash dividends - Praxair, Inc. shareholders					(177	)			(164	)				(355	)			(328	)
	Excess tax benefit on stock option exercises					10				12					24				44
	Noncontrolling interest transactions and other					(12	)			(41	)				(17	)			(41	)
	Net cash provided by (used for) financing activities					108				(123	)				1,138				(79	)
	Effect of exchange rate changes on cash and
	cash equivalents					(10	)			(9	)				(23	)			(7	)
	Change in cash and cash equivalents					(11	)			(3	)				(55	)			14
	Cash and cash equivalents, beginning-of-period					113				107					157				90
	Cash and cash equivalents, end-of-period				$	102			$	104				$	102			$	104

	PRAXAIR, INC. AND SUBSIDIARIES
	SEGMENT INFORMATION
	(Millions of dollars)
	(UNAUDITED)
								Quarter Ended							Year to Date
								June 30,							June 30,
								2013			2012				2013				2012
	SALES
	North America							$	1,552		$	1,393			$	3,009			$	2,791
	Europe								382			382				752				759
	South America								536			520				1,067				1,082
	Asia								379			348				746				682
	Surface Technologies								165			168				328				337
	Total sales							$	3,014		$	2,811			$	5,902			$	5,651
	OPERATING PROFIT
	North America							$	381		$	363			$	739			$	724
	Europe								69			68				131				136
	South America								123			110				237				225
	Asia								61			68				124				125
	Surface Technologies								31			27				57				53
	Segment operating profit								665			636				1,288				1,263
	Venezuela currency devaluation								-			-				(23	)			-
	Total operating profit							$	665		$	636			$	1,265			$	1,263

	PRAXAIR, INC. AND SUBSIDIARIES
	QUARTERLY FINANCIAL SUMMARY
	(Millions of dollars, except per share data)
	(UNAUDITED)
				2013									2012
				Q2				Q1 (b)					Q4				Q3 (b)				Q2				Q1
	FROM THE INCOME STATEMENT
	Sales			$	3,014			$	2,888				$	2,799			$	2,774			$	2,811			$	2,840
	Cost of sales				1,710				1,638					1,583				1,595				1,602				1,616
	Selling, general and administrative				344				337					319				306				310				335
	Depreciation and amortization				275				266					254				248				247				252
	Research and development				24				24					25				24				25				24
	Venezuela currency devaluation and other charges				-				23					-				65				-				-
	Other income (expenses) - net				4				-					(2	)			22				9				14
	Operating profit				665				600					616				558				636				627
	Interest expense - net				41				40					35				36				33				37
	Income taxes				174				164					162				90				169				165
	Income from equity investments				11				10					9				8				10				7
	Net income (including noncontrolling interests)				461				406					428				440				444				432
	Less: noncontrolling interests				(16	)			(15	)				(14	)			(10	)			(15	)			(13	)
	Net income - Praxair, Inc.			$	445			$	391				$	414			$	430			$	429			$	419
	PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
	Diluted earnings per share			$	1.49			$	1.30				$	1.38			$	1.43			$	1.42			$	1.38
	Cash dividends per share			$	0.60			$	0.60				$	0.55			$	0.55			$	0.55			$	0.55
	Diluted weighted average shares outstanding (000's)				298,654				299,700					300,224				301,731				302,492				302,876
	FROM THE BALANCE SHEET
	Net debt (a)			$	9,004			$	8,563				$	7,205			$	7,028			$	6,891			$	6,749
	Capital (a)			$	15,548			$	15,344				$	13,878			$	13,617			$	13,017			$	13,248
	Debt-to-capital ratio (a)				57.9	%			55.8	%				51.9	%			51.6	%			52.9	%			50.9	%
	FROM THE STATEMENT OF CASH FLOWS
	Cash flow from operations			$	577			$	472				$	879			$	746			$	725			$	402
	Capital expenditures				522				466					586				547				564				483
	Acquisitions				171				1,098					171				58				39				12
	Cash dividends				177				178					163				164				164				164
	OTHER INFORMATION
	After-tax return on capital (ROC) (a)				13.0	%			13.3	%				13.9	%			14.2	%			14.5	%			14.6	%
	Return on Praxair, Inc. shareholders' equity (ROE) (a)				28.4	%			28.1	%				28.9	%			29.2	%			29.0	%			28.4	%
	Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) (a)			$	951			$	899				$	879			$	879			$	893			$	886
	Debt-to-adjusted EBITDA ratio (a)				2.1				2.1					1.9				1.9				1.8				1.8
	Number of employees				27,878				27,380					26,539				26,215				26,353				26,259
	SEGMENT DATA
	SALES
	North America			$	1,552			$	1,457				$	1,416			$	1,391			$	1,393			$	1,398
	Europe				382				370					363				352				382				377
	South America				536				531					484				516				520				562
	Asia				379				367					374				358				348				334
	Surface Technologies				165				163					162				157				168				169
	Total sales			$	3,014			$	2,888				$	2,799			$	2,774			$	2,811			$	2,840
	OPERATING PROFIT
	North America			$	381			$	358				$	367			$	374			$	363			$	361
	Europe				69				62					60				60				68				68
	South America				123				114					92				112				110				115
	Asia				61				63					69				52				68				57
	Surface Technologies				31				26					28				25				27				26
	Segment operating profit				665				623					616				623				636				627
	Venezuela currency devaluation and other charges				-				(23	)				-				(65	)			-				-
	Total operating profit			$	665			$	600				$	616			$	558			$	636			$	627

	(a)		Non-GAAP measure, see Appendix.
	(b)		The first quarter 2013 includes a charge of $23 million ($23 million after-tax, or $0.08 per diluted share), related to the Venezuela currency devaluation. The third quarter 2012 includes: (i) a pre-tax charge of $56 million ($38 million after-tax and non-controlling interests, or $0.12 per diluted share) related to the 2012 cost reduction program; (ii) a pre-tax charge of $9 million ($6 million after-tax, or $0.02 per diluted share) related to pension settlement; and (iii) an income tax benefit of $55 million, or $0.18 per diluted share related to a loss on liquidated subsidiary as a result of the divestiture of the U.S. Homecare business.

	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 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.

	(Millions of dollars, except per share amounts)
					Operating Profit							Income Taxes							Net Income - Praxair, Inc.							Diluted EPS
					2013			2012				2013			2012				2013			2012				2013			2012
	Year To Date June 30,
	Reported GAAP amounts				$	1,265		$	1,263			$	338		$	334			$	836		$	848			$	2.79		$	2.80
	Non-GAAP adjustments:
	Venezuela currency devaluation (a)					23			-				-			-				23			-				0.08			-
	Total adjustments					23			-				-			-				23			-				0.08			-
	Adjusted amounts				$	1,288		$	1,263			$	338		$	334			$	859		$	848			$	2.87		$	2.80
	Note: There were no non-GAAP adjustments for the quarters ended June 30, 2013 or 2012.

	PRAXAIR, INC. AND SUBSIDIARIES
	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 2013 first quarter loss on Venezuela currency devaluation; and the 2012 third quarter cost reduction program, pension settlement charge, and an income tax benefit; and the 2011 fourth quarter gain on acquisition and cost reduction program which helps investors understand underlying performance on a comparable basis.
				2013									2012																	2011
				Q2				Q1					Q4				Q3				Q2				Q1					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.
	Debt			$	9,106			$	8,676				$	7,362			$	7,136			$	6,995			$	6,856				$	6,562			$	6,310			$	6,119			$	5,838
	Less: cash and cash equivalents				(102	)			(113	)				(157	)			(108	)			(104	)			(107	)				(90	)			(125	)			(80	)			(86	)
	Net debt				9,004				8,563					7,205				7,028				6,891				6,749					6,472				6,185				6,039				5,752
	Equity and redeemable noncontrolling interests:
	Redeemable noncontrolling interests				259				255					252				243				232				232					220				-				-				-
	Praxair, Inc. shareholders' equity				5,928				6,169					6,064				6,015				5,615				5,940					5,488				5,753				6,400				6,165
	Noncontrolling interests				357				357					357				331				279				327					309				368				370				372
	Total equity and redeemable noncontrolling interests				6,544				6,781					6,673				6,589				6,126				6,499					6,017				6,121				6,770				6,537
	Capital			$	15,548			$	15,344				$	13,878			$	13,617			$	13,017			$	13,248				$	12,489			$	12,306			$	12,809			$	12,289
	Debt-to-capital				57.9	%			55.8	%				51.9	%			51.6	%			52.9	%			50.9	%				51.8	%			50.3	%			47.1	%			46.8	%
	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).
	Adjusted operating profit (a)			$	665			$	623				$	616			$	623			$	636			$	627				$	619			$	632			$	627			$	591
	Less: adjusted income taxes (a)				(174	)			(164	)				(162	)			(164	)			(169	)			(165	)				(162	)			(166	)			(163	)			(156	)
	Less: tax benefit on interest expense				(11	)			(11	)				(10	)			(10	)			(9	)			(10	)				(11	)			(10	)			(10	)			(10	)
	Add: income from equity investments				11				10					9				8				10				7					7				13				11				9
	Adjusted net operating profit after-tax (NOPAT)			$	491			$	458				$	453			$	457			$	468			$	459				$	453			$	469			$	465			$	434
	4-quarter trailing adjusted NOPAT			$	1,859			$	1,836				$	1,837			$	1,837			$	1,849			$	1,846
	Ending capital (see above)			$	15,548			$	15,344				$	13,878			$	13,617			$	13,017			$	13,248				$	12,489			$	12,306			$	12,809			$	12,289
	5-quarter average ending capital			$	14,281			$	13,821				$	13,250			$	12,935			$	12,774			$	12,628
	After-tax ROC (4-quarter trailing NOPAT / 5-quarter average capital)				13.0	%			13.3	%				13.9	%			14.2	%			14.5	%			14.6	%
	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.
	Adjusted net income - Praxair, Inc. (a)			$	445			$	414				$	414			$	419			$	429			$	419				$	414			$	429			$	425			$	398
	4-quarter trailing adjusted net income - Praxair, Inc. (a)			$	1,692			$	1,676				$	1,681			$	1,681			$	1,691			$	1,687
	Ending Praxair, Inc. shareholders' equity			$	5,928			$	6,169				$	6,064			$	6,015			$	5,615			$	5,940				$	5,488			$	5,753			$	6,400			$	6,165
	5-quarter average Praxair shareholders' equity			$	5,958			$	5,961				$	5,824			$	5,762			$	5,839			$	5,949
	ROE (4-quarter trailing adjusted net income - Praxair, Inc. / 5-quarter average Praxair shareholders' equity)				28.4	%			28.1	%				28.9	%			29.2	%			29.0	%			28.4	%
	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.
	Adjusted net income - Praxair, Inc. (a)			$	445			$	414				$	414			$	419			$	429			$	419				$	414			$	429			$	425			$	398
	Add: adjusted noncontrolling interests (a)				16				15					14				12				15				13					12				14				14				11
	Add: interest expense - net				41				40					35				36				33				37					38				36				36				35
	Add: adjusted income taxes (a)				174				164					162				164				169				165					162				166				163				156
	Add: depreciation and amortization				275				266					254				248				247				252					249				256				254				244
	Adjusted EBITDA			$	951			$	899				$	879			$	879			$	893			$	886				$	875			$	901			$	892			$	844
	4-quarter trailing adjusted EBITDA			$	3,608			$	3,550				$	3,537			$	3,533			$	3,555			$	3,554
	Ending net debt (see above)			$	9,004			$	8,563				$	7,205			$	7,028			$	6,891			$	6,749				$	6,472			$	6,185			$	6,039			$	5,752
	5-quarter average net debt			$	7,738			$	7,287				$	6,869			$	6,665			$	6,467			$	6,239
	Debt-to-adjusted EBITDA ratio (5-quarter average net debt / 4-quarter trailing adjusted EBITDA)				2.1				2.1					1.9				1.9				1.8				1.8

	(a)		The following table presents adjusted amounts for Operating Profit and Operating Profit Margin, Income Taxes, Effective Tax Rate, Noncontrolling Interests, Net income - Praxair, Inc., and Diluted EPS for the First Quarter 2013, Third Quarter and full year 2012 and the Fourth Quarter 2011. Additionally, this table presents the percentage change in Diluted EPS Guidance for the full year 2013.
					First Quarter				Year				Third Quarter				Fourth Quarter
					2013				2012				2012				2011
			Adjusted Operating Profit and Operating Profit Margin
			Reported operating profit		$	600			$	2,437			$	558			$	618
			Add: Venezuela currency devaluation			23				-				-				-
			Add: Pension settlement charge			-				9				9				-
			Add: Cost reduction program			-				56				56				40
			Less: Gain on acquisition			-				-				-				(39	)
			Total adjustments			23				65				65				1
			Adjusted operating profit		$	623			$	2,502			$	623			$	619
			Reported sales		$	2,888			$	11,224			$	2,774			$	2,796
			Adjusted operating profit margin			21.6	%			22.3	%			22.5	%			22.1	%
			Adjusted Income Taxes
			Reported income taxes		$	164			$	586			$	90			$	156
			Add: Venezuela currency devaluation			-				-				-				-
			Add: Pension settlement charge			-				3				3				-
			Add: Income tax benefit			-				55				55				-
			Add: Cost reduction program			-				16				16				9
			Less: Gain on acquisition			-				-				-				(3	)
			Total adjustments			-				74				74				6
			Adjusted income taxes		$	164			$	660			$	164			$	162
			Adjusted Effective Tax Rate
			Reported income before income taxes and equity investments		$	560			$	2,296			$	522			$	580
			Add: Venezuela currency devaluation			23				-				-				-
			Add: Pension settlement charge			-				9				9				-
			Add: Cost reduction program			-				56				56				40
			Less: Gain on acquisition			-				-				-				(39	)
			Total adjustments			23				65				65				1
			Adjusted income before income taxes and equity investments		$	583			$	2,361			$	587			$	581
			Adjusted income taxes (above)		$	164			$	660			$	164			$	162
			Adjusted effective tax rate			28	%			28	%			28	%			28	%
			Adjusted Noncontrolling interest
			Reported noncontrolling interest		$	15			$	52			$	10			$	11
			Add: Cost reduction program			-				2				2				-
			Add: Gain on acquisition			-				-				-				1
			Total adjustments			-				2				2				1
			Adjusted noncontrolling interest		$	15			$	54			$	12			$	12
			Adjusted Net Income - Praxair, Inc.
			Reported net income - Praxair, Inc.		$	391			$	1,692			$	430			$	420
			Add: Venezuela currency devaluation			23				-				-				-
			Add: Pension settlement charge			-				6				6				-
			Less: Income tax benefit			-				(55	)			(55	)			-
			Add: Cost reduction program			-				38				38				31
			Less: Gain on acquisition			-				-				-				(37	)
			Total adjustments			23				(11	)			(11	)			(6	)
			Adjusted net income - Praxair, Inc.		$	414			$	1,681			$	419			$	414
			Adjusted Diluted EPS
			Reported diluted EPS		$	1.30			$	5.61			$	1.43			$	1.38
			Add: Venezuela currency devaluation			0.08				-				-				-
			Add: Pension settlement charge			-				0.02				0.02				-
			Less: Income tax benefit			-				(0.18	)			(0.18	)			-
			Add: Cost reduction program			-				0.12				0.12				0.10
			Less: Gain on acquisition			-				-				-				(0.12	)
			Total adjustments			0.08				(0.04	)			(0.04	)			(0.02	)
			Adjusted diluted EPS		$	1.38			$	5.57			$	1.39			$	1.36
			Percentage Change in Adjusted Full Year 2013 Diluted EPS Guidance
									Full Year 2013
									Low End				High End
			Diluted EPS guidance						$	5.82			$	5.92
			Non-GAAP adjustments:
			Add: Venezuela currency devaluation							0.08				0.08
			2013 adjusted diluted EPS						$	5.90			$	6.00
			2012 adjusted diluted EPS (see above)						$	5.57			$	5.57
			Percentage change from 2012 adjusted amounts							6	%			8	%