Praxair, Inc. (PX) has reported 15.46 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $339 million, or $1.18 a share in the quarter, compared with $401 million, or $1.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $405 million, or $1.41 a share compared with $419 million or $1.46 a share, a year ago.
Revenue during the quarter went up marginally by 1.12 percent to $2,716 million from $2,686 million in the previous year period. Gross margin for the quarter contracted 104 basis points over the previous year period to 43.56 percent. Total expenses were 81.70 percent of quarterly revenues, up from 77.89 percent for the same period last year. That has resulted in a contraction of 382 basis points in operating margin to 18.30 percent.
Operating income for the quarter was $497 million, compared with $594 million in the previous year period.
However, the adjusted operating income for the quarter stood at $597 million compared to $620 million in the prior year period. At the same time, adjusted operating margin contracted 110 basis points in the quarter to 21.98 percent from 23.08 percent in the last year period.
chairman and chief executive officer Steve Angel said, "As anticipated, the third quarter continued to experience mixed results in end-market trends with strong demand in more resilient food, beverage and healthcare markets, but persistent weakness from industrial sectors like manufacturing and upstream energy. In light of these trends, we took additional cost actions in the third quarter to properly align our organization and to accelerate planned acquisition synergies."
For the fourth-quarter, Praxair, Inc. projects diluted earnings per share to be in the range of $1.36 to $1.43.
For financial year 2016, Praxair, Inc. projects diluted earnings per share to be in the range of $5.17 to $5.24. The company projects diluted earnings per share to be in the range of $5.44 to $5.51 on adjusted basis.
Operating cash flow improves
Praxair, Inc. has generated cash of $2,047 million from operating activities during the nine month period, up 7.51 percent or $143 million, when compared with the last year period.
The company has spent $1,360 million cash to meet investing activities during the nine month period as against cash outgo of $952 million in the last year period.
The company has spent $232 million cash to carry out financing activities during the nine month period as against cash outgo of $900 million in the last year period.
Cash and cash equivalents stood at $627 million as on Sep. 30, 2016, up 361.03 percent or $491 million from $136 million on Sep. 30, 2015.
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