Praxair, Inc. (PX) has reported a 9.27 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $389 million, or $1.35 a share in the quarter, compared with $356 million, or $1.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $395 million, or $1.37 a share compared with $366 million or $1.28 a share, a year ago.
Revenue during the quarter grew 8.73 percent to $2,728 million from $2,509 million in the previous year period. Gross margin for the quarter contracted 159 basis points over the previous year period to 43.37 percent. Total expenses were 78.67 percent of quarterly revenues, up from 77.92 percent for the same period last year. That has resulted in a contraction of 75 basis points in operating margin to 21.33 percent.
Operating income for the quarter was $582 million, compared with $554 million in the previous year period.
However, the adjusted operating income for the quarter stood at $588 million compared to $554 million in the prior year period. At the same time, adjusted operating margin contracted 53 basis points in the quarter to 21.55 percent from 22.08 percent in the last year period.
Commenting on the financial results and business outlook, chairman and chief executive officer Steve Angel said, "Praxair employees once again delivered high-quality results through the execution of our core strategy. First quarter sales grew 9% versus prior year, primarily driven by higher organic volumes across all end-markets. By geographic segment, volume growth was attained in North America, Europe and Asia, partially offset by South America due to the challenging economic environment in Brazil. Furthermore, we maintained strong margins and increased our operating cash flow 28% year-over-year."
For financial year 2017, Praxair, Inc. forecasts diluted earnings per share to be in the range of $5.53 to $5.78. It forecasts diluted earnings per share to be in the range of $5.55 to $5.80 on adjusted basis for the same period.
Operating cash flow improves significantly
Praxair, Inc. has generated cash of $710 million from operating activities during the quarter, up 28.39 percent or $157 million, when compared with the last year period.
The company has spent $324 million cash to meet investing activities during the quarter as against cash outgo of $384 million in the last year period.
The company has spent $396 million cash to carry out financing activities during the quarter as against cash outgo of $119 million in the last year period.
Cash and cash equivalents stood at $519 million as on Mar. 31, 2017, up 134.84 percent or $298 million from $221 million on Mar. 31, 2016.
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