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Praxair, Inc.$164.50($.99)(.60%)

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 Praxair Reports First-Quarter 2017 Results
   Thursday, April 27, 2017 6:01:01 AM ET

--Operating cash flow of $0.7 billion, 28% above prior-year quarter

--EPS of $1.35, up 9% vs. prior-year quarter; adjusted EPS of $1.37, up 7%

--Successful execution of our core strategy Volume growth of 4% vs. prior-year quarter, driven by North America, Europe and Asia

--Resilient end-markets rise to 28% of sales

--Backlog $1.5 billion; includes recently announced Celanese project win in U.S. Gulf Coast

--Continued progress toward definitive merger agreement with Linde AG

Praxair, Inc. (PX ) reported first-quarter net income and diluted earnings per share of $389 million and $1.35, respectively. These results include transaction costs of $6 million after-tax, or 2 cents of diluted earnings per share, related to the potential Linde AG merger. Excluding this charge, adjusted net income and diluted earnings per share were $395 million and $1.37, respectively.



Praxair’s sales in the first quarter were $2,728 million, 9% above the prior-year quarter, up 6% excluding higher cost pass-through and positive currency translation effect. Sales growth was primarily driven by higher volumes in North America, Europe and Asia and included new project start-ups. By end-market, sales growth was led by metals, downstream energy, chemicals and electronics.

Reported operating profit in the first quarter was $582 million, 5% above the prior-year quarter. Excluding the current quarter impact of transaction costs, adjusted operating profit was $588 million, 6% above the prior-year quarter. Reported operating profit as a percentage of sales was 21.3%. Adjusted operating profit as a percentage of sales was 21.6% and the adjusted EBITDA margin was 32.5%.

First-quarter cash flow from operations was $710 million, 28% above the prior-year quarter. Capital expenditures were $327 million and the company paid $225 million of dividends.

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.

"While our employees maintain their relentless focus on executing our strategy, we have made significant progress on the potential merger with Linde AG and are working toward reaching a definitive agreement as soon as practicable.

"As we look to the remainder of the year, we anticipate improved base volume growth in-line with the current macro-economic environment. New project opportunities, specifically in the U.S. Gulf Coast, continue to be a bright spot as bidding activity remains robust. Based on our competitive advantage in the region, we remain confident in our ability to win additional projects.

"The combination of our execution culture and highly talented employees will enable Praxair to continually deliver high-quality results."

For the second quarter of 2017, Praxair expects diluted earnings per share in the range of $1.38 to $1.43, excluding transaction costs related to the potential merger.

For full-year 2017, Praxair expects adjusted diluted earnings per share to be in the range of $5.55 to $5.80. This full-year guidance excludes transaction costs related to the potential merger. GAAP diluted earnings per share are expected to be in the range of $5.53 to $5.78 and exclude transaction costs incurred after the first quarter. Full-year capital expenditures are expected to be approximately $1.4 billion.

Following is additional detail on first-quarter 2017 results by segment.

In North America, first-quarter sales were $1,458 million, 5% above the prior-year quarter excluding higher cost-pass through. Sales growth was driven primarily by stronger volumes to downstream energy, metals, chemicals, food and beverage and healthcare end-markets and higher price. Acquisitions contributed 1% growth, primarily packaged gas distributors. Operating profit was $357 million.

In Europe, first-quarter sales were $356 million, 11% above the prior-year quarter. Excluding negative currency and positive cost pass-through, sales grew 13% from the prior year due to higher volumes including project start-ups, and acquisitions primarily related to the carbon dioxide business largely serving the food and beverage end-market. Operating profit of $66 million grew 10% from the prior-year, excluding negative currency translation impact.

In South America, first-quarter sales were $369 million, 19% above the prior-year quarter. Excluding positive currency translation, sales grew 1% due to higher price. Volume growth from project start-ups was offset by continued negative underlying base volumes in Brazil, primarily the manufacturing end-market. Operating profit was $64 million.

Sales in Asia were $395 million in the quarter, up 5% from the prior-year. Excluding currency, cost pass-through and a prior-year net divestiture, sales grew 8%, driven by higher volumes in China, India and Korea, primarily to the electronics, metals and chemicals end-markets. Operating profit was $75 million.

Praxair Surface Technologies had first-quarter sales of $150 million as compared to $149 million in the prior-year quarter. Excluding negative currency translation, sales were 3% above the prior-year period driven by favorable price and higher aerospace volumes, partially offset by weaker sales to the energy end-markets. Operating profit was $26 million.

Praxair, Inc., a Fortune 300 company with 2016 sales of $11 billion, is a leading industrial gas 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. 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, primary metals and many others. More information about Praxair, Inc. is available at www.praxair.com.

Adjusted amounts are non-GAAP measures. Additionally, measures such as EBITDA, free cash flow, after-tax return on capital, return on equity and debt-to-capital are also non-GAAP measures. See the attachments for a summary of non-GAAP reconciliations and calculations of non-GAAP measures.

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

A teleconference about Praxair’s first-quarter results is being held this morning, April 27, 2017 at 11:00 am Eastern Time. The number is (631) 485-4849 - Conference ID: 88420720. The call is also available as a webcast live and on-demand at www.praxair.com/investors. Materials to be used in the teleconference are also available on the website.

Additional Information and Where to Find It

Should Praxair, Inc. ("Praxair") and Linde AG ("Linde") proceed with the proposed business combination transaction, Praxair and Linde expect that a newly formed holding company ("New Holdco") will file a Registration Statement on Form S-4 or Form F-4 with the U.S. Securities and Exchange Commission ("SEC") that will include (1) a proxy statement of Praxair that will also constitute a prospectus for New Holdco and (2) an offering prospectus of New Holdco to be used in connection with New Holdco’s offer to acquire Linde shares held by U.S. holders. When available, Praxair will mail the proxy statement/prospectus to its stockholders in connection with the vote to approve the merger of Praxair and a wholly-owned subsidiary of New Holdco, and New Holdco will distribute the offering prospectus to Linde shareholders in the United States in connection with New Holdco’s offer to acquire all of the outstanding shares of Linde. Should Praxair and Linde proceed with the proposed business combination transaction, Praxair and Linde also expect that New Holdco will file an offer document with the German Federal Financial Supervisory Authority (Bundesanstalt fuer Finanzdienstleistungsaufsicht) ("BaFin"). There can be no assurance that a binding definitive agreement will be reached between Praxair and Linde, and the consummation of any binding transaction will be subject to regulatory approvals and other customary closing conditions.

INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND THE OFFER DOCUMENT REGARDING THE PROPOSED BUSINESS COMBINATION TRANSACTION AND PROPOSED OFFER IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of the proxy statement/prospectus (if and when it becomes available) and other related documents filed by Praxair, Linde and New Holdco with the SEC on the SEC’s Web site at www.sec.gov. The proxy statement/prospectus (if and when it becomes available) and other documents relating thereto may also be obtained for free by accessing Praxair’s Web site at www.praxair.com. Following approval by the BaFin, the offer document will be made available at BaFin’s Web site at www.bafin.de. The offer document (if and when it becomes available) and other documents relating thereto may also be obtained for free by accessing Linde’s Web site at www.linde.com.

This document is neither an offer to purchase nor a solicitation of an offer to sell shares of New Holdco, Praxair or Linde. The final terms and further provisions regarding the public offer will be disclosed in the offer document after the publication has been approved by the BaFin and in documents that will be filed with the SEC. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted. The information contained herein should not be considered as a recommendation that any person should subscribe for or purchase any securities.

No offering of securities shall be made except by means of a prospectus meeting the requirements of the U.S. Securities Act of 1933, as amended, and applicable European and German regulations. The distribution of this document may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein come should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. No offering of securities will be made directly or indirectly, in or into any jurisdiction where to do so would be inconsistent with the laws of such jurisdiction.

Participants in Solicitation

Praxair, Linde, New Holdco and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Praxair’s stockholders in respect of the proposed business combination. Information regarding the persons who are, under the rules of the SEC, participants in the solicitation of the stockholders of Praxair in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement/prospectus if and when it is filed with the SEC. Information regarding the directors and executive officers of Praxair is contained in Praxair’s Annual Report on Form 10-K for the year ended December 31, 2016 and its Proxy Statement on Schedule 14A, dated March 15, 2017, which are filed with the SEC and can be obtained free of charge from the sources indicated above.

Forward-looking Statements

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 expected timing and likelihood of the entry into or the completion of the contemplated business combination with Linde AG, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals that could reduce anticipated benefits or cause the parties not to enter into, or to abandon the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed business combination agreement; the ability to successfully complete the proposed business combination and the exchange offer, including satisfying closing conditions; the success of the business following the proposed business combination; the ability to successfully integrate the Praxair and Linde businesses; the possibility that Praxair stockholders may not approve the proposed business combination agreement or that the requisite number of Linde shares may not be tendered in the public offer; the risk that the combined company may be unable to achieve expected synergies or that it may take longer or be more costly than expected to achieve those synergies; 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; the impact of potential unusual or non-recurring items; 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 GAAP or adjusted projections or estimates contained in the forward-looking statements. 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 latest Annual Report on Form 10-K 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
                                                                                                                                                                                                          SUMMARY NON-GAAP RECONCILIATIONS
                                                                                                                                                                                                                     (UNAUDITED)
 
The following adjusted amounts are Non-GAAP measures and 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. See the Non-GAAP reconciliations starting
on page 11 for additional details relating to the Non-GAAP
adjustments.
                                                                                                                                                                                                            
(Millions of dollars, except per share amounts)
                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                   Sales                                                                                   Operating Profit                                                                         Net Income - Praxair, Inc.                                                                                     Diluted EPS
                                                                ---------------------------------------------------------------------------                     -----------------------------------------------------------------------                     ---------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------
                                                                           2017                                            2016                                           2017                                          2016                                           2017                                            2016                                            2017                                                   2016
                                                                -------------------------                       -------------------------                       -----------------------                       -----------------------                       -------------------------                       -------------------------                       ------------------------                       ----------------------------------------
Quarter Ended March 31
----------------------------------------
Reported GAAP Amounts                                                              $ 2,728                                         $ 2,509                                         $ 582                                         $ 554                                         $   389                                         $   356                                         $ 1.35                                         $                 1.24
  Transaction costs (a)                                                                  -                                               -                                             6                                             -                                               6                                               -                                           0.02                                                              -
  Bond redemption (b)                                                 -         -       -       -         -        10        -                     0.04
                                                                -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- --- -------------------- -------------------- --- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- --------------------
    Total adjustments                                                 -         -       6       -         6        10     0.02                     0.04
                                                                -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- --- -------------------- -------------------- --- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- --------------------
Adjusted amounts                                                                   $ 2,728                      $ 2,509                      $ 588                      $ 554                      $   395                      $   366                      $ 1.37                      $                 1.28
                                                                ==================== ===== ==================== ==================== ===== ==================== ==================== === ==================== ==================== === ==================== ==================== ===== ==================== ==================== ===== ==================== ==================== ==== ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                 
(a) Charges in the 2017 first quarter for transaction costs related
to the potential Linde merger.
(b) $16 million charge to interest expense ($10 million after-tax or
$0.04 per diluted share) in the 2016 first quarter related to a bond
redemption.
 
                                                                                                                                                                            
                                                                                 PRAXAIR, INC. AND SUBSIDIARIES
                                                                                CONSOLIDATED STATEMENTS OF INCOME
                                                                          (Millions of dollars, except per share data)
                                                                                           (UNAUDITED)
 
                                                                                                          Quarter Ended
                                                                                                                               March 31,
                                                                       -------------------------------------------------------------------------------------------------------------------------
                                                                                              2017                                                2016
                                                                       --------------------------------------------------                     --------------------------------------------------
                                                                                                                                               
SALES                                                                                     $   2,728                                                              $   2,509
Cost of sales                                                                                 1,545                                                                  1,381
Selling, general and administrative                                                             279                                                                    274
Depreciation and amortization                                                                   287                                                                    272
Research and development                                                                         23                                                                     23
Transaction costs and other charges                                                               6                                                                      -
Other income (expense) - net                                                  (6 )                                                (5 )
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------
OPERATING PROFIT                                                                                582                                                                    554
Interest expense - net                                                        41                               65  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS                                               541                                                                    489
Income taxes                                                                 149                              133  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------
INCOME BEFORE EQUITY INVESTMENTS                                                                392                                                                    356
Income from equity investments                                                12                               10  
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)                                                 404                                                                    366
Less: noncontrolling interests                                               (15 )                                               (10 )
                                                                       -------------------- ------- --------------------                      -------------------- ------- --------------------
NET INCOME - PRAXAIR, INC.                                                                $     389                                           $     356  
                                                                       ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                               
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
                                                                                                                                               
Basic earnings per share                                                                  $    1.36                                                              $    1.25
                                                                                                                                               
Diluted earnings per share                                                                $    1.35                                                              $    1.24
                                                                                                                                               
Cash dividends                                                                            $  0.7875                                                              $    0.75
                                                                                                                                               
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic shares outstanding (000’s)                                                            285,509                                                                285,429
Diluted shares outstanding (000’s)                                                          287,384                                                                286,665
                                                                                                                                                                            
Note: See page 5 for a reconciliation to 2017 adjusted amounts which
are Non-GAAP.
 
                                                                                                                                                                      
                                                                              PRAXAIR, INC. AND SUBSIDIARIES
                                                                           CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                   (Millions of dollars)
                                                                                        (UNAUDITED)
 
                                                                    March 31,                                        December 31,
                                                                                         2017                                                                  2016
                                                                   -------------------------------------------------                     -------------------------------------------------
ASSETS
Cash and cash equivalents                                                             $    519                                                              $    524
Accounts receivable - net                                                                1,730                                                                 1,641
Inventories                                                                                561                                                                   550
Prepaid and other current assets                                        204                             165  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL CURRENT ASSETS                                                                     3,014                                                                 2,880
Property, plant and equipment - net                                                     11,692                                                                11,477
Goodwill                                                                                 3,141                                                                 3,117
Other intangibles - net                                                                    574                                                                   583
Other long-term assets                                                1,244                           1,275  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL ASSETS                                                                          $ 19,665                                           $ 19,332  
                                                                   ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                          
LIABILITIES AND EQUITY
Accounts payable                                                                      $    860                                                              $    906
Short-term debt                                                                            411                                                                   434
Current portion of long-term debt                                                           10                                                                   164
Other current liabilities                                               968                             974  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL CURRENT LIABILITIES                                                                2,249                                                                 2,478
Long-term debt                                                                           8,947                                                                 8,917
Other long-term liabilities                                           2,494                           2,485  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL LIABILITIES                                                                       13,690                                                                13,880
                                                                                                                                          
REDEEMABLE NONCONTROLLING INTERESTS                                                         10                                                                    11
                                                                                                                                          
PRAXAIR, INC. SHAREHOLDERS’ EQUITY:
Common stock                                                                                 4                                                                     4
Additional paid-in capital                                                               4,071                                                                 4,074
Retained earnings                                                                       13,041                                                                12,879
Accumulated other comprehensive income (loss)                                           (4,285 )                                                              (4,600 )
Less: Treasury stock, at cost                                        (7,302 )                                           (7,336 )
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
    Total Praxair, Inc. Shareholders’ Equity                                             5,529                                                                 5,021
Noncontrolling interests                                                436                             420  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL EQUITY                                                          5,965                           5,441  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL LIABILITIES AND EQUITY                                                          $ 19,665                                           $ 19,332  
                                                                   ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                      
                                                                                                                                                                                  
                                                                                    PRAXAIR, INC. AND SUBSIDIARIES
                                                                            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                         (Millions of dollars)
                                                                                              (UNAUDITED)
 
                                                                                                                  Quarter Ended
                                                                                                                                       March 31,
                                                                                ----------------------------------------------------------------------------------------------------------------------
                                                                                                      2017                                              2016
                                                                                ------------------------------------------------                     -------------------------------------------------
OPERATIONS
  Net income - Praxair, Inc.                                                                       $   389                                                              $    356
  Noncontrolling interests                                                           15                              10  
                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
  Net income (including noncontrolling interests)                                                      404                                                                   366
                                                                                                                                                      
  Adjustments to reconcile net income to net cash provided
  by operating activities:
    Transaction costs and other charges                                                                  6                                                                     -
    Depreciation and amortization                                                                      287                                                                   272
    Accounts receivable                                                                                (49 )                                                                 (20 )
    Inventory                                                                                           (2 )                                                                  (7 )
    Payables and accruals                                                                              (42 )                                                                 (77 )
    Pension contributions                                                                               (3 )                                                                  (2 )
    Deferred income taxes and other                                                 109                              21  
                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
      Net cash provided by operating activities                                     710                             553  
                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                      
INVESTING
  Capital expenditures                                                                                (327 )                                                                (323 )
  Acquisitions, net of cash acquired                                                                    (1 )                                                                 (63 )
  Divestitures and asset sales                                                        4                               2  
                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
      Net cash used for investing activities                                       (324 )                                             (384 )
                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                      
FINANCING
  Debt increase (decrease) - net                                                                      (173 )                                                                  95
  Issuances of common stock                                                                             26                                                                    34
  Purchases of common stock                                                                            (11 )                                                                 (32 )
  Cash dividends - Praxair, Inc. shareholders                                                         (225 )                                                                (214 )
  Noncontrolling interest transactions and other                                    (13 )                                               (2 )
                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
      Net cash provided by (used for) financing activities                                            (396 )                                                                (119 )
                                                                                                                                                      
Effect of exchange rate changes on cash and
cash equivalents                                                                      5                              24  
                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                      
Change in cash and cash equivalents                                                                     (5 )                                                                  74
Cash and cash equivalents, beginning-of-period                                      524                             147  
                                                                                -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                      
Cash and cash equivalents, end-of-period                                                           $   519                                           $    221  
                                                                                ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                      
                                                                      PRAXAIR, INC. AND SUBSIDIARIES
                                                                            SEGMENT INFORMATION
                                                                           (Millions of dollars)
                                                                                (UNAUDITED)
 
                                                                                         Quarter Ended
                                                                                                              March 31,
                                                           ---------------------------------------------------------------------------------------------------------------
                                                                                 2017                                           2016
                                                           ------------------------------------------------                     ------------------------------------------
SALES
  North America                                                               $ 1,458                                                              $                1,353
  Europe                                                                          356                                                                                 320
  South America                                                                   369                                                                                 311
  Asia                                                                            395                                                                                 376
  Surface Technologies                                         150                                           149
                                                           -------------------- ----- --------------------                      -------------------- --------------------
    Consolidated sales                                                        $ 2,728                                           $                2,509
                                                           ==================== ===== ====================                      ==================== ====================
                                                                                                                                 
OPERATING PROFIT
  North America                                                               $   357                                                              $                  349
  Europe                                                                           66                                                                                  62
  South America                                                                    64                                                                                  55
  Asia                                                                             75                                                                                  63
  Surface Technologies                                          26                                            25
                                                           -------------------- ----- --------------------                      -------------------- --------------------
    Segment operating profit                                                  $   588                                                              $                  554
  Transaction costs and other charges                           (6 )                                                              -
                                                           -------------------- ----- --------------------                      -------------------- --------------------
    Total operating profit                                                    $   582                                           $                  554
                                                           ==================== ===== ====================                      ==================== ====================
                                                                                                                                                      
                                                                                                                                                                    
                                                                                                                                                              PRAXAIR, INC. AND SUBSIDIARIES
                                                                                                                                                                QUARTERLY FINANCIAL SUMMARY
                                                                                                                                                       (Millions of dollars, except per share data)
                                                                                                                                                                        (UNAUDITED)
 
                                                                              2017 (b)                                                                                                                       2016 (c)
                                                                            --------------------------------------------------                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    Q1                                                                     Q4                                                Q3                                                Q2                                                Q1
FROM THE INCOME STATEMENT
Sales                                                                                          $   2,728                                                              $   2,644                                         $   2,716                                         $   2,665                                         $   2,509
Cost of sales                                                                                      1,545                                                                  1,478                                             1,533                                             1,468                                             1,381
Selling, general and administrative                                                                  279                                                                    272                                               291                                               308                                               274
Depreciation and amortization                                                                        287                                                                    285                                               284                                               281                                               272
Research and development                                                                              23                                                                     23                                                22                                                24                                                23
Transaction costs and other charges                                                                    6                                                                      -                                               100                                                 -                                                 -
Other income (expense) - net                                                       (6 )                                                13          11           4          (5 )
                                                                            -------------------- ------- --------------------                      -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Operating profit                                                                                     582                                                 599                                               497                                               588                                               554
Interest expense - net                                                                                41                                                                     38                                                43                                                44                                                65
Income taxes                                                                                         149                                                                    152                                               120                                               146                                               133
Income from equity investments                                                     12                               10          10          11          10  
                                                                            -------------------- ------- --------------------                      -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Net income (including noncontrolling interests)                                                      404                                                 419                                               344                                               409                                               366
Less: noncontrolling interests                                                    (15 )                                               (13 )                           (5 )                          (10 )                          (10 )
                                                                            -------------------- ------- --------------------                      -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Net income - Praxair, Inc.                                                                     $     389                                           $     406                      $     339                      $     399                      $     356  
                                                                            ==================== ======= ====================                      ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                          
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Diluted earnings per share                                                                     $    1.35                                                              $    1.41                                         $    1.18                                         $    1.39                                         $    1.24
Cash dividends per share                                                                       $  0.7875                                                              $    0.75                                         $    0.75                                         $    0.75                                         $    0.75
Diluted weighted average shares outstanding (000’s)                                              287,384                                                                287,956                                           288,195                                           287,727                                           286,665
                                                                                                                                                                                                                                                                                                          
ADJUSTED AMOUNTS (a)
Operating profit                                                                               $     588                                                              $     599                                         $     597                                         $     588                                         $     554
Operating margin                                                                                    21.6 %                                                                 22.7 %                                            22.0 %                                            22.1 %                                            22.1 %
Net Income                                                                                     $     395                                                              $     406                                         $     405                                         $     399                                         $     366
Diluted earnings per share                                                                     $    1.37                                                              $    1.41                                         $    1.41                                         $    1.39                                         $    1.28
                                                                                                                                                                                                                                                                                                          
FROM THE BALANCE SHEET
Net debt (a)                                                                                   $   8,849                                                              $   8,991                                         $   9,215                                         $   9,389                                         $   9,183
Capital (a)                                                                                    $  14,824                                                              $  14,443                                         $  14,864                                         $  14,948                                         $  14,607
Debt-to-capital ratio (a)                                                                           59.7 %                                                                 62.3 %                                            62.0 %                                            62.8 %                                            62.9 %
                                                                                                                                                                                                                                                                                                          
FROM THE STATEMENT OF CASH FLOWS
Cash flow from operations                                                                      $     710                                                              $     726                                         $     788                                         $     706                                         $     553
Cash flow provided by (used for) investing activities                                               (324 )                                                                 (410 )                                            (363 )                                            (613 )                                            (384 )
Cash flow provided by (used for) financing activities                                               (396 )                                                                 (411 )                                            (362 )                                             249                                              (119 )
Capital expenditures                                                                                 327                                                                    409                                               376                                               357                                               323
Acquisitions                                                                                           1                                                                     18                                                20                                               262                                                63
Cash dividends                                                                                       225                                                                    214                                               214                                               214                                               214
                                                                                                                                                                                                                                                                                                          
OTHER INFORMATION
After-tax return on capital (ROC) (a)                                                               12.0 %                                                                 12.0 %                                            12.1 %                                            12.2 %                                            12.4 %
Return on Praxair, Inc. shareholders’ equity (ROE) (a)                                              31.1 %                                                                 31.9 %                                            33.3 %                                            34.0 %                                            34.6 %
Adjusted EBITDA (a)                                                                            $     887                                                              $     894                                         $     891                                         $     880                                         $     836
Adjusted EBITDA margin (a)                                                                          32.5 %                                                                 33.8 %                                            32.8 %                                            33.0 %                                            33.3 %
Debt-to-adjusted EBITDA ratio (a)                                                                    2.6                                                                    2.6                                               2.6                                               2.6                                               2.6
Number of employees                                                                               26,420                                                                 26,498                                            26,680                                            26,896                                            26,558
                                                                                                                                                                                                                                                                                                          
SEGMENT DATA
SALES
North America                                                                                  $   1,458                                                              $   1,397                                         $   1,431                                         $   1,411                                         $   1,353
Europe                                                                                               356                                                                    351                                               366                                               355                                               320
South America                                                                                        369                                                                    352                                               378                                               358                                               311
Asia                                                                                                 395                                                                    395                                               391                                               393                                               376
Surface Technologies                                                              150                              149         150         148         149  
                                                                            -------------------- ------- --------------------                      -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
    Total sales                                                                                $   2,728                                           $   2,644                      $   2,716                      $   2,665                      $   2,509  
                                                                            ==================== ======= ====================                      ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ====================
OPERATING PROFIT
North America                                                                                  $     357                                                              $     359                                         $     363                                         $     359                                         $     349
Europe                                                                                                66                                                                     71                                                72                                                68                                                62
South America                                                                                         64                                                                     64                                                68                                                70                                                55
Asia                                                                                                  75                                                                     78                                                68                                                67                                                63
Surface Technologies                                                               26                               27          26          24          25  
                                                                            -------------------- ------- --------------------                      -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
    Segment operating profit                                                                         588                                                                    599                                               597                                               588                                               554
Transaction costs and other charges                                                (6 )                                                 -        (100 )                            -           -  
                                                                            -------------------- ------- --------------------                      -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
    Total operating profit                                                                     $     582                        $     599                      $     497                      $     588                      $     554  
                                                                            ==================== ======= ====================                      ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                       
(a)   Non-GAAP measure, see Appendix.
                          
(b)                      2017 includes an after-tax charge of $6 million ($0.02 per diluted
                         share) in the first quarter for transaction costs related to the
                         potential Linde merger.
                          
(c)                      2016 includes (i) a $16 million charge to interest expense ($10
                         million after-tax, or $0.04 per diluted share) in the first quarter
                         related to the redemption of the $325 million notes due 2017, (ii) a
                         pre-tax pension settlement charge of $4 million ($3 million
                         after-tax, or $0.01 per diluted share) in the third quarter related
                         to lump sum benefit payments made from the U.S. supplemental pension
                         plan, and (iii) pre-tax charges of $96 million ($63 million
                         after-tax and non-controlling interests, or $0.22 per diluted share)
                         in the third quarter, primarily related to cost reduction actions.
                          
 
                                                                                                                                                                                                                                     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 financial leverage,
return on capital 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 impacts of the 2017 first quarter transaction costs, 2016 third
quarter cost reduction program and pension settlement, 2016 first
quarter bond redemption, 2015 third quarter cost reduction program
and pension settlement, and 2015 second quarter cost reduction
program and other charges.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                        2017                                                                                                                                                                           2016                                                                                                                                                                                                                                                                                    2015
                                                                                     ----------------------------------------------                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            Q1                                                                    Q4                                                                    Q3                                                                    Q2                                                                    Q1                                                                    Q4                                                                    Q3                                                                    Q2                                                                    Q1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Free Cash Flow (FCF) - Free
cash flow is a measure used by investors, financial analysts and
management to evaluate the ability of a company to pursue
opportunities that enhance shareholder value. FCF equals cash flow
from operations less capital expenditures.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
  Operating cash flow                                                                                   $    710                                                              $    726                                                              $    788                                                              $    706                                                              $    553                                                              $    791                                                              $    676                                                              $    710                                                              $    518
  Less: capital expenditures                                                             (327 )                                             (409 )                          (376 )                          (357 )                          (323 )                                             (387 )                          (405 )                          (352 )                          (397 )
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                                                                                        $    383                                                              $    317                                                              $    412                                                              $    349                                                              $    230                                                              $    404                                                              $    271                                                              $    358                                                              $    121
    Free Cash Flow
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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                                                                                                  $  9,368                                                              $  9,515                                                              $  9,842                                                              $  9,956                                                              $  9,404                                                              $  9,231                                                              $  9,480                                                              $  9,313                                                              $  9,360
  Less: cash and cash equivalents                                                        (519 )                                             (524 )                          (627 )                          (567 )                          (221 )                                             (147 )                          (136 )                          (136 )                          (117 )
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
    Net debt                                                                                               8,849                                                                 8,991                                                                 9,215                                                                 9,389                                                                 9,183                                                                 9,084                                                                 9,344                                                                 9,177                                                                 9,243
  Equity and redeemable noncontrolling interests:
    Redeemable noncontrolling interests                                                                       10                                                                    11                                                                    11                                                                    12                                                                   119                                                                   113                                                                   169                                                                   175                                                                   170
    Praxair, Inc. shareholders’ equity                                                                     5,529                                                                 5,021                                                                 5,245                                                                 5,140                                                                 4,888                                                                 4,389                                                                 4,264                                                                 4,964                                                                 5,018
    Noncontrolling interests                                                              436                             420          393          407          417                             404          380          380          375  
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
      Total equity and redeemable noncontrolling interests                              5,975                           5,452        5,649        5,559        5,424                           4,906        4,813        5,519        5,563  
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
    Capital                                                                                             $ 14,824                                                              $ 14,443                                                              $ 14,864                                                              $ 14,948                                                              $ 14,607                                                              $ 13,990                                                              $ 14,157                                                              $ 14,696                                                              $ 14,806
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
    Debt-to-capital                                                                      59.7 %                                             62.3 %                          62.0 %                          62.8 %                          62.9 %                                             64.9 %                          66.0 %                          62.4 %                          62.4 %
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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)                                                                         $    588                                                              $    599                                                              $    597                                                              $    588                                                              $    554                                                              $    624                                                              $    620                                                              $    626                                                              $    623
  Less: adjusted income taxes (a)                                                                           (149 )                                                                (152 )                                                                (149 )                                                                (146 )                                                                (139 )                                                                (163 )                                                                (164 )                                                                (164 )                                                                (162 )
  Less: tax benefit on adjusted interest expense (a)                                                         (12 )                                                                 (10 )                                                                 (12 )                                                                 (12 )                                                                 (14 )                                                                 (12 )                                                                 (10 )                                                                 (11 )                                                                 (12 )
  Add: income from equity investments                                                      12                              10           10           11           10                              12           10           10           11  
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
  Adjusted net operating profit after-tax (NOPAT)                                                       $    439                                                              $    447                                                              $    446                                                              $    441                                                              $    411                                                              $    461                                                              $    456                                                              $    461                                                              $    460
  4-quarter trailing adjusted NOPAT                                                                     $  1,773                                                              $  1,745                                                              $  1,759                                                              $  1,769                                                              $  1,789                                                              $  1,838                                                              $  1,879                                                              $  1,945                                                              $  1,996
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
  Ending capital (see above)                                                                            $ 14,824                                                              $ 14,443                                                              $ 14,864                                                              $ 14,948                                                              $ 14,607                                                              $ 13,990                                                              $ 14,157                                                              $ 14,696                                                              $ 14,806
  5-quarter average ending capital                                                                      $ 14,737                                                              $ 14,570                                                              $ 14,513                                                              $ 14,480                                                              $ 14,451                                                              $ 14,587                                                              $ 14,999                                                              $ 15,460                                                              $ 15,777
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
  After-tax ROC (4-quarter trailing NOPAT / 5-quarter average                            12.0 %                                             12.0 %                          12.1 %                          12.2 %                          12.4 %                                             12.6 %                          12.5 %                          12.6 %                          12.7 %
  capital)
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Return on Praxair, Inc. Shareholders’
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)                                                               $    395                                                              $    406                                                              $    405                                                              $    399                                                              $    366                                                              $    422                                                              $    419                                                              $    420                                                              $    416
  4-quarter trailing adjusted net income - Praxair, Inc.                                                $  1,605                                                              $  1,576                                                              $  1,592                                                              $  1,606                                                              $  1,627                                                              $  1,677                                                              $  1,715                                                              $  1,773                                                              $  1,820
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
  Ending Praxair, Inc. shareholders’ equity                                                             $  5,529                                                              $  5,021                                                              $  5,245                                                              $  5,140                                                              $  4,888                                                              $  4,389                                                              $  4,264                                                              $  4,964                                                              $  5,018
  5-quarter average Praxair shareholders’ equity                                                        $  5,165                                                              $  4,937                                                              $  4,785                                                              $  4,729                                                              $  4,705                                                              $  4,852                                                              $  5,284                                                              $  5,814                                                              $  6,141
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
  ROE (4-quarter trailing adjusted net income - Praxair, Inc. /                          31.1 %                                             31.9 %                          33.3 %                          34.0 %                          34.6 %                                             34.6 %                          32.5 %                          30.5 %                          29.6 %
  5-quarter average Praxair shareholders’ equity)
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Adjusted EBITDA, Adjusted EBITDA Margin
and Debt-to-Adjusted EBITDA Ratio -
These measures are used by investors, financial analysts and
management to assess a company’s profitability.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
  Adjusted net income - Praxair, Inc. (a)                                                               $    395                                                              $    406                                                              $    405                                                              $    399                                                              $    366                                                              $    422                                                              $    419                                                              $    420                                                              $    416
  Add: adjusted noncontrolling interests (a)                                                                  15                                                                    13                                                                    10                                                                    10                                                                    10                                                                     9                                                                    12                                                                    12                                                                    12
  Add: adjusted interest expense - net (a)                                                                    41                                                                    38                                                                    43                                                                    44                                                                    49                                                                    42                                                                    35                                                                    40                                                                    44
  Add: adjusted income taxes (a)                                                                             149                                                                   152                                                                   149                                                                   146                                                                   139                                                                   163                                                                   164                                                                   164                                                                   162
  Add: depreciation and amortization                                                      287                             285          284          281          272                             275          276          278          277  
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
  Adjusted EBITDA                                                                                       $    887                                                              $    894                                                              $    891                                                              $    880                                                              $    836                                                              $    911                                                              $    906                                                              $    914                                                              $    911
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
  Reported sales                                                                                           2,728                                                                 2,644                                                                 2,716                                                                 2,665                                                                 2,509                                                                 2,595                                                                 2,686                                                                 2,738                                                                 2,757
  Adjusted EBITDA margin                                                                                    32.5 %                                                                33.8 %                                                                32.8 %                                                                33.0 %                                                                33.3 %                                                                35.1 %                                                                33.7 %                                                                33.4 %                                                                33.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
  Ending net debt (see above)                                                                           $  8,849                                                              $  8,991                                                              $  9,215                                                              $  9,389                                                              $  9,183                                                              $  9,084                                                              $  9,344                                                              $  9,177                                                              $  9,243
  5-quarter average net debt                                                                            $  9,125                                                              $  9,172                                                              $  9,243                                                              $  9,236                                                              $  9,206                                                              $  9,189                                                              $  9,157                                                              $  9,080                                                              $  9,063
  4-quarter trailing adjusted EBITDA                                                                    $  3,552                                                              $  3,501                                                              $  3,518                                                              $  3,533                                                              $  3,567                                                              $  3,642                                                              $  3,697                                                              $  3,814                                                              $  3,900
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
  Debt-to-adjusted EBITDA ratio (5-quarter average net debt /                             2.6                             2.6          2.6          2.6          2.6                             2.5          2.5          2.4          2.3  
  4-quarter trailing adjusted EBITDA)
                                                                                     -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 
(a) The following table presents adjusted amounts for Operating Profit
    and Operating Profit Margin, Interest Expense - net, Income Taxes,
    Effective Tax Rate, Noncontrolling Interests, Net income -
    Praxair, Inc., and Diluted EPS for the periods presented.
    Additionally, this table presents cash income taxes and cash
    interest, net of interest capitalized and excluding the bond
    redemption costs for 2016.
                                                                                                                                        
                                                                                                First                        Year                          Third                        First                        Year                          Third                             Second
                                                                                               Quarter                                                    Quarter                      Quarter                                                    Quarter                            Quarter
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
                                                                                                2017                         2016                          2016                         2016                         2015                          2015                               2015
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
    Adjusted Operating Profit and Operating
    Profit Margin
    --------------------------------------------------------------------
    Reported operating profit                                                                   $ 582                       $ 2,238                        $ 497                        $ 554                       $ 2,321                        $ 594                                     $ 480
    Add: Cost reduction program and other charges                                                   -                            96                           96                            -                           165                           19                                       146
    Add: Pension settlement charge                                                                  -                             4                            4                            -                             7                            7                                         -
    Add: Transaction costs                                                                          6                             -                            -                            -                             -                            -                                         -
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
      Total adjustments                                                                             6                           100                          100                            -                           172                           26                                       146
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
    Adjusted operating profit                                                                   $ 588                       $ 2,338                        $ 597                        $ 554                       $ 2,493                        $ 620                                     $ 626
                                                                                              =======                      ========                      =======                      =======                      ========                      =======                      ====================
                                                                                                                                                                                                                                                                               
    Reported percentage change                                                                     5%
    Adjusted percentage change                                                                     6%
                                                                                                                                                                                                                                                                               
    Reported sales                                                                            $ 2,728                      $ 10,534                      $ 2,716                      $ 2,509                      $ 10,776                      $ 2,686                                   $ 2,738
    Adjusted operating profit margin                                                            21.6%                         22.2%                        22.0%                        22.1%                         23.1%                        23.1%                                     22.9%
                                                                                                                                                                                                                                                                               
    Adjusted Interest Expense - net
    --------------------------------------------------------------------
    Reported interest expense - net                                                              $ 41                         $ 190                         $ 43                         $ 65                         $ 161                         $ 35                                      $ 40
    Less: Bond redemption                                                                           -                          (16)                            -                         (16)                             -                            -                                         -
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
    Adjusted interest expense - net                                                              $ 41                         $ 174                         $ 43                         $ 49                         $ 161                         $ 35                                      $ 40
                                                                                              =======                      ========                      =======                      =======                      ========                      =======                      ====================
                                                                                                                                                                                                                                                                               
    Adjusted Income Taxes
    --------------------------------------------------------------------
    Reported income taxes                                                                       $ 149                         $ 551                        $ 120                        $ 133                         $ 612                        $ 156                                     $ 131
    Add: Cost reduction program and other charges                                                   -                            28                           28                            -                            39                            6                                        33
    Add: Bond redemption                                                                            -                             6                            -                            6                             -                            -                                         -
    Add: Pension settlement charge                                                                  -                             1                            1                            -                             2                            2                                         -
    Add: Transaction costs                                                                          -                             -                            -                            -                             -                            -                                         -
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
      Total adjustments                                                                             -                            35                           29                            6                            41                            8                                        33
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
    Adjusted income taxes                                                                       $ 149                         $ 586                        $ 149                        $ 139                         $ 653                        $ 164                                     $ 164
                                                                                              =======                      ========                      =======                      =======                      ========                      =======                      ====================
                                                                                                                                                                                                                                                                               
    Adjusted Effective Tax Rate
    --------------------------------------------------------------------
    Reported income before income taxes and equity investments                                  $ 541                       $ 2,048                        $ 454                        $ 489                       $ 2,160                        $ 559                                     $ 440
    Add: Cost reduction program and other charges                                                   -                            96                           96                            -                           165                           19                                       146
    Add: Bond redemption                                                                            -                            16                            -                           16                             -                            -                                         -
    Add: Pension settlement charge                                                                  -                             4                            4                            -                             7                            7                                         -
    Add: Transaction costs                                                                          6                             -                            -                            -                             -                            -                                         -
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
      Total adjustments                                                                             6                           116                          100                           16                           172                           26                                       146
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
    Adjusted income before income taxes and equity investments                                  $ 547                       $ 2,164                        $ 554                        $ 505                       $ 2,332                        $ 585                                     $ 586
                                                                                              =======                      ========                      =======                      =======                      ========                      =======                      ====================
                                                                                                                                                                                                                                                                               
    Reported effective tax rate                                                                 27.5%                         26.9%                        26.4%                        27.2%                         28.3%                        27.9%                                     29.8%
    Adjusted effective tax rate                                                                 27.2%                         27.1%                        26.9%                        27.5%                         28.0%                        28.0%                                     28.0%
                                                                                                                                                                                                                                                                               
    Adjusted Noncontrolling Interests
    --------------------------------------------------------------------
    Reported noncontrolling interests                                                            $ 15                          $ 38                          $ 5                         $ 10                          $ 44                         $ 12                                      $ 11
    Add: Cost reduction program and other charges                                                   -                             5                            5                            -                             1                            -                                         1
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
      Total adjustments                                                                             -                             5                            5                            -                             1                            -                                         1
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
    Adjusted noncontrolling interests                                                            $ 15                          $ 43                         $ 10                         $ 10                          $ 45                         $ 12                                      $ 12
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
                                                                                                                                                                                                                                                                               
    Adjusted Net Income - Praxair, Inc.
    --------------------------------------------------------------------
    Reported net income - Praxair, Inc.                                                         $ 389                       $ 1,500                        $ 339                        $ 356                       $ 1,547                        $ 401                                     $ 308
    Add: Cost reduction program and other charges                                                   -                            63                           63                            -                           125                           13                                       112
    Add: Bond redemption                                                                            -                            10                            -                           10                             -                            -                                         -
    Add: Pension settlement charge                                                                  -                             3                            3                            -                             5                            5                                         -
    Add: Transaction costs                                                                          6                             -                            -                            -                             -                            -                                         -
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
      Total adjustments                                                                             6                            76                           66                           10                           130                           18                                       112
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
    Adjusted net income - Praxair, Inc.                                                         $ 395                       $ 1,576                        $ 405                        $ 366                       $ 1,677                        $ 419                                     $ 420
                                                                                              =======                      ========                      =======                      =======                      ========                      =======                      ====================
                                                                                                                                                                                                                                                                               
    Reported percentage change                                                                     9%
    Adjusted percentage change                                                                     8%
                                                                                                                                                                                                                                                                               
    Adjusted Diluted EPS
    --------------------------------------------------------------------
    Reported diluted EPS                                                                       $ 1.35                        $ 5.21                       $ 1.18                       $ 1.24                        $ 5.35                       $ 1.40                                    $ 1.06
    Add: Cost reduction program and other charges                                                   -                          0.22                         0.22                            -                          0.43                         0.04                                      0.39
    Add: Bond redemption                                                                            -                          0.04                            -                         0.04                             -                            -                                         -
    Add: Pension settlement charge                                                                  -                          0.01                         0.01                            -                          0.02                         0.02                                         -
    Add: Transaction costs                                                                       0.02                             -                            -                            -                             -                            -                                         -
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
      Total adjustments                                                                          0.02                          0.27                         0.23                         0.04                          0.45                         0.06                                      0.39
                                                                                              -------                      --------                      -------                      -------                      --------                      -------                      --------------------
    Adjusted diluted EPS                                                                       $ 1.37                        $ 5.48                       $ 1.41                       $ 1.28                        $ 5.80                       $ 1.46                                    $ 1.45
                                                                                              =======                      ========                      =======                      =======                      ========                      =======                      ====================
                                                                                                                                                                                                                                                                               
    Reported percentage change                                                                     9%
    Adjusted percentage change                                                                     7%
                                                                                                                                                                                                                                                                               
    Cash Income Taxes and Interest
    --------------------------------------------------------------------
    Income taxes paid                                                                                                         $ 585                                                                                   $ 420
    Interest paid, net of interest capitalized and excluding bond                                                             $ 173                                                                                   $ 174
    redemption
                                                                                                                                                                                                                                                                               
    Full Year 2017 Diluted EPS Guidance
    --------------------------------------------------------------------
                                                                                                          Full Year 2017
                                                                                              --------------------------------------
                                                                                               Low End                     High End
                                                                                              -------                      --------
                                                                                                                                                                                                                                                                               
    2017 GAAP diluted EPS guidance                                                             $ 5.53                        $ 5.78
    Add: Q1 Transaction costs (excludes future merger transaction costs)                         0.02                          0.02
                                                                                              -------                      --------
    2017 adjusted diluted EPS guidance                                                         $ 5.55                        $ 5.80
                                                                                              -------                      --------
    2016 adjusted diluted EPS (see above for full year amounts)                                $ 5.48                        $ 5.48
                                                                                              -------                      --------
                                                                                                                                                                                                                                                                               
    Adjusted percentage change                                                                     1%                            6%
    Adjusted percentage change, excluding estimated currency impact                                2%                            7%

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170427005228r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170427005228/en/

SOURCE: Praxair, Inc.

Praxair, Inc. 
Media: 
Jason Stewart, (203) 837-2448 
jason_stewart@praxair.com 
or 
Investor: 
Juan Pelaez, (203) 837-2213 
juan_pelaez@praxair.com


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