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Praxair, Inc.$150.36($.32)(.21%)

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 Praxair Reports Second-Quarter 2017 Results
   Thursday, July 27, 2017 6:01:02 AM ET

--Strong operating cash flow, 25% of sales

--Free cash flow of $0.4 billion, 8% above prior-year quarter

--EPS of $1.41, up 1% vs. prior-year quarter; adjusted EPS of $1.46, up 5%

--Continued focus on execution of our core strategy Volume growth +3%, price attainment +1% vs. prior-year quarter

--Project start-ups in China, Korea and Canada

--Backlog $1.4 billion; includes new project win in U.S. Gulf Coast

--Continued progress on merger with Linde AG Signed definitive Business Combination Agreement on June 1, 2017

Praxair, Inc. (PX ) reported second-quarter net income and diluted earnings per share of $406 million and $1.41, respectively. These results include transaction costs of $15 million after-tax, or 5 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 $421 million and $1.46, respectively.



Praxair’s sales in the second quarter were $2,834 million, 6% above the prior-year quarter. Excluding cost pass-through, sales grew 4%, driven by higher volumes in North America, Europe and Asia, including new project start-ups, and price attainment. Sales growth was primarily led by electronics, chemicals, metals, energy and food and beverage end-markets.

Reported operating profit in the second quarter was $604 million, 3% above the prior-year quarter. Excluding the current quarter impact of transaction costs, adjusted operating profit was $619 million, 5% 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 21.8%. EBITDA margin was 32.0% and adjusted EBITDA margin was 32.5%.

The company generated strong second-quarter cash flow from operations of $701 million, 25% of sales. After capital expenditures of $325 million, free cash flow was $376 million, up 8% over the prior-year quarter. The company paid $225 million of dividends.

Commenting on the financial results and business outlook, Chairman and Chief Executive Officer Steve Angel said, "Our second quarter results reflect Praxair employees’ ability to execute our core strategy and deliver high-quality results. Adjusted operating profit growth of 5% outpaced underlying sales growth of 4%, and generated strong operating cash flow of 25% of sales.

"The second quarter continued to reflect broad-based demand across all end-markets, but as anticipated, revealed further weakness in South America. In addition, we added to our project backlog another long-term on-site supply agreement with a petrochemical customer in the U.S. Gulf Coast which will further strengthen our network in the region. Including this new win, over 80% of our $1.4 billion project backlog now relates to the U.S. Gulf Coast and we remain confident in our ability to win additional projects.

"Furthermore, during the second quarter we announced the signing of a business combination agreement between Praxair and Linde AG. This was an important milestone toward creating significant value for our stakeholders. We are currently working closely with regulators and shareholders to obtain the appropriate approvals and will provide a more detailed progress update in the coming months.

"Looking ahead, we are taking a more measured view as we do not anticipate significant underlying economic improvement in the second half of the year. In the U.S., aggregate customer demand has yet to match recent economic expectations and South America, specifically Brazil, continues to face political challenges that undermine the economy. Conversely, we expect Europe to remain stable, Asia to moderately grow and new project start-ups to contribute towards the latter part of the year. However, regardless of the economy, Praxair’s relentless focus on operational excellence and financial discipline will continue to deliver strong cash flow and earnings per share for our shareholders."

For the third quarter of 2017, Praxair expects diluted earnings per share in the range of $1.40 to $1.46, 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 $5.63 to $5.75. 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 $5.56 to $5.68 which includes $0.07 per diluted share for the first and second quarter transaction costs and excludes future transaction costs related to the potential merger. Full-year capital expenditures are expected to be approximately $1.4 billion.

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

In North America, second-quarter sales were $1,505 million, 4% above the prior-year quarter excluding cost-pass through and currency. Sales growth was driven primarily by stronger volumes to chemical, manufacturing and electronic end-markets and higher price. Operating profit was $378 million, 5% above the prior-year quarter.

In Europe, second-quarter sales were $383 million, 8% above the prior-year quarter. Excluding negative currency, sales grew 10% from the prior-year due to higher volumes including project start-ups, price and an acquisition primarily related to the carbon dioxide business largely serving the food and beverage end-market. Operating profit was $73 million.

In South America, second-quarter sales were $373 million, 4% above the prior-year quarter. Excluding positive currency translation and cost pass-through, sales were 3% below the prior-year quarter due to lower volumes driven by continued weak macro-economic conditions, largely in manufacturing. Operating profit was $63 million.

Sales in Asia were $422 million in the quarter, up 7% from the prior-year. Excluding a prior-year net divestiture, sales grew 11% driven by higher volumes in China, India and Korea, primarily in the electronics, metals and chemicals end-markets and price attainment. Operating profit was $80 million, 19% above the prior-year quarter.

Praxair Surface Technologies had second-quarter sales of $151 million as compared to $148 million in the prior-year quarter. Excluding negative currency translation, sales were 4% above the prior-year period driven by 2% volume growth, largely aerospace coatings, and 2% growth from acquisitions. Operating profit was $25 million.

About Praxair

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, EBITDA, free cash flow and after-tax return on capital are 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 second-quarter results is being held this morning, July 27, 2017 at 11:00 am Eastern Time. The number is (631) 485-4849 - Conference ID: 48847647. 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

In connection with the proposed business combination between Praxair, Inc. ("Praxair") and Linde AG ("Linde"), Linde plc ("New Holdco") has filed a Registration Statement on Form S-4 (which Registration Statement has not yet been declared effective) with the U.S. Securities and Exchange Commission ("SEC") that includes (1) a proxy statement of Praxair that also constitutes 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. Once the Registration Statement is declared effective by the SEC, Praxair will mail the proxy statement/prospectus to its stockholders in connection with the vote to approve the merger of Praxair and an indirect 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. New Holdco will also file an offer document with the German Federal Financial Supervisory Authority (Bundesanstalt fuer Finanzdienstleistungsaufsicht) ("BaFin"). The consummation of the proposed business combination is 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 BECAUSE THEY CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of the proxy statement/prospectus 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 and other documents relating thereto may also be obtained for free by accessing Praxair’s Web site at www.praxair.com. Following approval of its publication by the BaFin, the offer document will be made available for free at New Holdco’s website at www.lindepraxairmerger.com. Furthermore, the offer document is expected to be made available at BaFin’s website for free at www.bafin.de.

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, are set forth in the proxy statement/prospectus 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 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 to abandon the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the 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 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 and in the proxy statement/prospectus and the offering prospectus included in the Registration Statement on Form S-4 (which Registration Statement has not yet been declared effective) filed by New Holdco 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 June 30
----------------------------------------
Reported GAAP Amounts                                                              $   2,834                                         $ 2,665                                         $   604                                         $   588                                         $  406                                         $  399                                         $ 1.41                                         $       1.39
  Transaction costs (a)                                                 -         -        15         -       15        -     0.05              -
                                                                -------------------- ------- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ----------
      Total adjustments                                                 -         -        15         -       15        -     0.05              -
                                                                -------------------- ------- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ----------
Adjusted amounts                                                                   $   2,834                      $ 2,665                      $   619                      $   588                      $  421                      $  399                      $ 1.46                      $       1.39
                                                                ==================== ======= ==================== ==================== ===== ==================== ==================== ===== ==================== ==================== ===== ==================== ==================== ==== ==================== ==================== ==== ==================== ==================== ==== ==================== ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                
Year To Date June 30
----------------------------------------
Reported GAAP Amounts                                                              $   5,562                                         $ 5,174                                         $ 1,186                                         $ 1,142                                         $  795                                         $  755                                         $ 2.76                                         $       2.63
  Transaction costs (a)                                                                    -                                               -                                              21                                               -                                             21                                              -                                           0.07                                                    -
  Bond redemption (b)                                                   -         -         -         -        -       10        -           0.04
                                                                -------------------- ------- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ----------
      Total adjustments                                                 -         -        21         -       21       10     0.07           0.04
                                                                -------------------- ------- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ---- -------------------- -------------------- ----------
Adjusted amounts                                                                   $   5,562                      $ 5,174                      $ 1,207                      $ 1,142                      $  816                      $  765                      $ 2.83                      $       2.67
                                                                ==================== ======= ==================== ==================== ===== ==================== ==================== ===== ==================== ==================== ===== ==================== ==================== ==== ==================== ==================== ==== ==================== ==================== ==== ==================== ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                
(a) Charges in the 2017 first and second quarters for transaction
costs related to the potential Linde merger.
(b) Charge to interest expense 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                                                                                                                                 Year to Date
                                                                                                                                                                         June 30,                                                                                                                                      June 30,
                                                                                                                 -------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        2017                                                                   2016                                                                   2017                                                                   2016
                                                                                                                 --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
                                                                                                                                                                                                                                                                                                                                       
SALES                                                                                                                               $   2,834                                                              $   2,665                                                              $   5,562                                                              $   5,174
Cost of sales                                                                                                                           1,598                                                                  1,468                                                                  3,143                                                                  2,849
Selling, general and administrative                                                                                                       308                                                                    308                                                                    587                                                                    582
Depreciation and amortization                                                                                                             292                                                                    281                                                                    579                                                                    553
Research and development                                                                                                                   23                                                                     24                                                                     46                                                                     47
Transaction costs and other charges                                                                                                        15                                                                      -                                                                     21                                                                      -
Other income (expense) - net                                                                                             6                                4                                -                               (1 )
                                                                                                                 -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
OPERATING PROFIT                                                                                                                          604                                                                    588                                                                  1,186                                                                  1,142
Interest expense - net                                                                                                  38                               44                               79                              109  
                                                                                                                 -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS                                                                                         566                                                                    544                                                                  1,107                                                                  1,033
Income taxes                                                                                                           157                              146                              306                              279  
                                                                                                                 -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
INCOME BEFORE EQUITY INVESTMENTS                                                                                                          409                                                                    398                                                                    801                                                                    754
Income from equity investments                                                                                          11                               11                               23                               21  
                                                                                                                 -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)                                                                                           420                                                                    409                                                                    824                                                                    775
Less: noncontrolling interests                                                                                         (14 )                                               (10 )                                               (29 )                                               (20 )
                                                                                                                 -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
NET INCOME - PRAXAIR, INC.                                                                                                          $     406                                           $     399                                           $     795                                           $     755  
                                                                                                                 ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                       
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
                                                                                                                                                                                                                                                                                                                                       
Basic earnings per share                                                                                                            $    1.42                                                              $    1.40                                                              $    2.78                                                              $    2.64
                                                                                                                                                                                                                                                                                                                                       
Diluted earnings per share                                                                                                          $    1.41                                                              $    1.39                                                              $    2.76                                                              $    2.63
                                                                                                                                                                                                                                                                                                                                       
Cash dividends                                                                                                                      $  0.7875                                                              $    0.75                                                              $   1.575                                                              $    1.50
                                                                                                                                                                                                                                                                                                                                       
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic shares outstanding (000’s)                                                                                                      286,090                                                                285,702                                                                285,799                                                                285,566
Diluted shares outstanding (000’s)                                                                                                    288,535                                                                287,727                                                                288,067                                                                287,426
                                                                                                                                                                                                                                                                                                                                       
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)
                                                                                                      
                                                                                                                                 June 30,                                                            December 31,
                                                                                                                                   2017                                                                  2016
                                                                                                             -------------------------------------------------                     -------------------------------------------------
ASSETS
Cash and cash equivalents                                                                                                       $    535                                                              $    524
Accounts receivable - net                                                                                                          1,791                                                                 1,641
Inventories                                                                                                                          568                                                                   550
Prepaid and other current assets                                                                                  225                             165  
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL CURRENT ASSETS                                                                                                               3,119                                                                 2,880
Property, plant and equipment - net                                                                                               11,806                                                                11,477
Goodwill                                                                                                                           3,182                                                                 3,117
Other intangibles - net                                                                                                              568                                                                   583
Other long-term assets                                                                                          1,290                           1,275  
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL ASSETS                                                                                                                    $ 19,965                                           $ 19,332  
                                                                                                             ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                    
LIABILITIES AND EQUITY
Accounts payable                                                                                                                $    900                                                              $    906
Short-term debt                                                                                                                      280                                                                   434
Current portion of long-term debt                                                                                                    910                                                                   164
Other current liabilities                                                                                         953                             974  
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL CURRENT LIABILITIES                                                                                                          3,043                                                                 2,478
Long-term debt                                                                                                                     8,177                                                                 8,917
Other long-term liabilities                                                                                     2,475                           2,485  
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL LIABILITIES                                                                                                                 13,695                                                                13,880
                                                                                                                                                                                    
REDEEMABLE NONCONTROLLING INTERESTS                                                                                                   10                                                                    11
                                                                                                                                                                                    
PRAXAIR, INC. SHAREHOLDERS’ EQUITY:
Common stock                                                                                                                           4                                                                     4
Additional paid-in capital                                                                                                         4,076                                                                 4,074
Retained earnings                                                                                                                 13,223                                                                12,879
Accumulated other comprehensive income (loss)                                                                                     (4,244 )                                                              (4,600 )
Less: Treasury stock, at cost                                                                                  (7,252 )                                           (7,336 )
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
  Total Praxair, Inc. Shareholders’ Equity                                                                                         5,807                                                                 5,021
Noncontrolling interests                                                                                          453                             420  
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL EQUITY                                                                                                    6,260                           5,441  
                                                                                                             -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL LIABILITIES AND EQUITY                                                                                                    $ 19,965                                           $ 19,332  
                                                                                                             ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                
                                                                                                                                                                                                                       
                                                                                                                                                                                        PRAXAIR, INC. AND SUBSIDIARIES
                                                                                                                                                                                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                                                             (Millions of dollars)
                                                                                                                                                                                                  (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                   Quarter Ended                                                                                                                             Year to Date
                                                                                                                                                                                                     June 30,                                                                                                                                  June 30,
                                                                                                                                                -------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                     2017                                                                2016                                                                 2017                                                                 2016
                                                                                                                                                -----------------------------------------------                     -----------------------------------------------                     ------------------------------------------------                     -------------------------------------------------
OPERATIONS
   Net income - Praxair, Inc.                                                                                                                                      $  406                                                              $  399                                                              $   795                                                              $    755
   Noncontrolling interests                                                                                                                         14                            10                             29                              20  
                                                                                                                                                -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
   Net income (including noncontrolling interests)                                                                                                                    420                                                                 409                                                                  824                                                                   775
                                                                                                                                                                                                                                                                                                                                                              
   Adjustments to reconcile net income to net cash provided
   by operating activities:
     Transaction costs and other charges, net of payments                                                                                                              11                                                                   -                                                                   17                                                                     -
     Depreciation and amortization                                                                                                                                    292                                                                 281                                                                  579                                                                   553
     Accounts Receivable                                                                                                                                              (46 )                                                               (41 )                                                                (95 )                                                                 (61 )
     Inventory                                                                                                                                                         (3 )                                                                (1 )                                                                 (5 )                                                                  (8 )
     Payables and accruals                                                                                                                                             18                                                                  14                                                                  (24 )                                                                 (63 )
     Pension contributions                                                                                                                                             (3 )                                                                (4 )                                                                 (6 )                                                                  (6 )
     Deferred income taxes and other                                                                                                                12                            48                            121                              69  
                                                                                                                                                -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
        Net cash provided by operating activities                                                                                                  701                           706                          1,411                           1,259  
                                                                                                                                                -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                              
INVESTING
   Capital expenditures                                                                                                                                              (325 )                                                              (357 )                                                               (652 )                                                                (680 )
   Acquisitions, net of cash acquired                                                                                                                                  (1 )                                                              (262 )                                                                 (2 )                                                                (325 )
   Divestitures and asset sales                                                                                                                     13                             6                             17                               8  
                                                                                                                                                -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
      Net cash used for investing activities                                                                                                      (313 )                                           (613 )                                            (637 )                                             (997 )
                                                                                                                                                -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                              
FINANCING
   Debt increase (decrease) - net                                                                                                                                    (132 )                                                               595                                                                 (305 )                                                                 690
   Issuances of common stock                                                                                                                                           44                                                                  26                                                                   70                                                                    60
   Purchases of common stock                                                                                                                                            -                                                                 (51 )                                                                (11 )                                                                 (83 )
   Cash dividends - Praxair, Inc. shareholders                                                                                                                       (225 )                                                              (214 )                                                               (450 )                                                                (428 )
   Noncontrolling interest transactions and other                                                                                                  (71 )                                           (107 )                                             (84 )                                             (109 )
                                                                                                                                                -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
      Net cash provided by (used for) financing activities                                                                                                           (384 )                                                               249                                                                 (780 )                                                                 130
                                                                                                                                                                                                                                                                                                                                                              
 Effect of exchange rate changes on cash and
 cash equivalents                                                                                                                                   12                             4                             17                              28  
                                                                                                                                                -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                              
 Change in cash and cash equivalents                                                                                                                                   16                                                                 346                                                                   11                                                                   420
 Cash and cash equivalents, beginning-of-period                                                                                                    519                           221                            524                             147  
                                                                                                                                                -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                              
 Cash and cash equivalents, end-of-period                                                                                                                          $  535                                           $  567                                           $   535                                           $    567  
                                                                                                                                                ==================== ==== ====================                      ==================== ==== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                      
                                                                                                                                                                               PRAXAIR, INC. AND SUBSIDIARIES
                                                                                                                                                                                     SEGMENT INFORMATION
                                                                                                                                                                                    (Millions of dollars)
                                                                                                                                                                                         (UNAUDITED)
   
                                                                                                                                                                                                            Quarter Ended                                                                                                          Year to Date
                                                                                                                                                                                                              June 30,                                                                                                               June 30,
                                                                                                                                                                  ------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------
                                                                                                                                                                                        2017                                                      2016                                                       2017                                                         2016
                                                                                                                                                                  ------------------------------------------------                     ---------------------------                     ------------------------------------------------                     --------------------------------
SALES
                                          North America                                                                                                                              $ 1,505                                                              $ 1,411                                         $ 2,963                                                              $      2,764
                                          Europe                                                                                                                                         383                                                                  355                                             739                                                                       675
                                          South America                                                                                                                                  373                                                                  358                                             742                                                                       669
                                          Asia                                                                                                                                           422                                                                  393                                             817                                                                       769
                                          Surface Technologies                                                                                                        151                            148                          301                                 297
                                                                                                                                                                  -------------------- ----- --------------------                      -------------------- -----                      -------------------- ----- --------------------                      -------------------- ----------
                                               Consolidated sales                                                                                                                    $ 2,834                                           $ 2,665                                         $ 5,562                                           $      5,174
                                                                                                                                                                  ==================== ===== ====================                      ==================== =====                      ==================== ===== ====================                      ==================== ==========
                                                                                                                                                                                                                                                                                                                                                             
OPERATING PROFIT
                                          North America                                                                                                                              $   378                                                              $   359                                         $   735                                                              $        708
                                          Europe                                                                                                                                          73                                                                   68                                             139                                                                       130
                                          South America                                                                                                                                   63                                                                   70                                             127                                                                       125
                                          Asia                                                                                                                                            80                                                                   67                                             155                                                                       130
                                          Surface Technologies                                                                                                         25                             24                           51                                  49
                                                                                                                                                                  -------------------- ----- --------------------                      -------------------- -----                      -------------------- ----- --------------------                      -------------------- ----------
                                               Segment operating profit                                                                                                              $   619                                                              $   588                                         $ 1,207                                                              $      1,142
                                          Transaction costs and other charges                                                                                         (15 )                                               -                          (21 )                                                    -
                                                                                                                                                                  -------------------- ----- --------------------                      -------------------- -----                      -------------------- ----- --------------------                      -------------------- ----------
                                               Total operating profit                                                                                                                $   604                                           $   588                                         $ 1,186                                           $      1,142
                                                                                                                                                                  ==================== ===== ====================                      ==================== =====                      ==================== ===== ====================                      ==================== ==========
                                                                                                                                                                                                                                                                                                                                                             
 
                                                                                                                                                                                                             PRAXAIR, INC. AND SUBSIDIARIES
                                                                                                                                                                                                               QUARTERLY FINANCIAL SUMMARY
                                                                                                                                                                                                      (Millions of dollars, except per share data)
                                                                                                                                                                                                                       (UNAUDITED)
                                          
                                                                                                                                                                                        2017 (b)                                                                                                                                                2016 (c)
                                                                                                                                          ----------------------------------------------------------------------------------------------------  --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                  Q2                                                Q1                                                  Q4                                                Q3                                                Q2                                                Q1
FROM THE INCOME STATEMENT
Sales                                                                                                                                                        $   2,834                                         $   2,728                                           $   2,644                                         $   2,716                                         $   2,665                                         $   2,509
Cost of sales                                                                                                                                                    1,598                                             1,545                                               1,478                                             1,533                                             1,468                                             1,381
Selling, general and administrative                                                                                                                                308                                               279                                                 272                                               291                                               308                                               274
Depreciation and amortization                                                                                                                                      292                                               287                                                 285                                               284                                               281                                               272
Research and development                                                                                                                                            23                                                23                                                  23                                                22                                                24                                                23
Transaction costs and other charges                                                                                                                                 15                                                 6                                                   -                                               100                                                 -                                                 -
Other income (expense) - net                                                                                                                      6          (6 )                             13          11           4          (5 )
                                                                                                                                          -------------------- ------- -------------------- -------------------- ------- --------------------   -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Operating profit                                                                                                                                                   604                                               582                      -                          599                                               497                                               588                                               554
Interest expense - net                                                                                                                                              38                                                41                                                  38                                                43                                                44                                                65
Income taxes                                                                                                                                                       157                                               149                                                 152                                               120                                               146                                               133
Income from equity investments                                                                                                                   11          12            10          10          11          10  
                                                                                                                                          -------------------- ------- -------------------- -------------------- ------- --------------------   -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Net income (including noncontrolling interests)                                                                                                                    420                                               404                      #                          419                                               344                                               409                                               366
Less: noncontrolling interests                                                                                                                  (14 )                          (15 )                            (13 )                           (5 )                          (10 )                          (10 )
                                                                                                                                          -------------------- ------- -------------------- -------------------- ------- --------------------   -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Net income - Praxair, Inc.                                                                                                                                   $     406                      $     389                        $     406                      $     339                      $     399                      $     356  
                                                                                                                                          ==================== ======= ==================== ==================== ======= ====================   ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                       
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Diluted earnings per share                                                                                                                                   $    1.41                                         $    1.35                                           $    1.41                                         $    1.18                                         $    1.39                                         $    1.24
Cash dividends per share                                                                                                                                     $  0.7875                                         $  0.7875                                           $    0.75                                         $    0.75                                         $    0.75                                         $    0.75
Diluted weighted average shares outstanding (000’s)                                                                                                            288,535                                           287,384                                             287,956                                           288,195                                           287,727                                           286,665
                                                                                                                                                                                                                                                                                                                                                                                                       
ADJUSTED AMOUNTS (a)
Operating profit                                                                                                                                             $     619                                         $     588                                           $     599                                         $     597                                         $     588                                         $     554
Operating margin                                                                                                                                                  21.8 %                                            21.6 %                                              22.7 %                                            22.0 %                                            22.1 %                                            22.1 %
Net Income                                                                                                                                                   $     421                                         $     395                                           $     406                                         $     405                                         $     399                                         $     366
Diluted earnings per share                                                                                                                                   $    1.46                                         $    1.37                                           $    1.41                                         $    1.41                                         $    1.39                                         $    1.28
                                                                                                                                                                                                                                                                                                                                                                                                       
FROM THE BALANCE SHEET
Net debt (a)                                                                                                                                                 $   8,832                                         $   8,849                                           $   8,991                                         $   9,215                                         $   9,389                                         $   9,183
Capital (a)                                                                                                                                                  $  15,102                                         $  14,824                                           $  14,443                                         $  14,864                                         $  14,948                                         $  14,607
                                                                                                                                                                                                                                                                                                                                                                                                       
FROM THE STATEMENT OF CASH FLOWS
Cash flow from operations                                                                                                                                    $     701                                         $     710                                           $     726                                         $     788                                         $     706                                         $     553
Cash flow provided by (used for) investing activities                                                                                                             (313 )                                            (324 )                                              (410 )                                            (363 )                                            (613 )                                            (384 )
Cash flow provided by (used for) financing activities                                                                                                             (384 )                                            (396 )                                              (411 )                                            (362 )                                             249                                              (119 )
Capital expenditures                                                                                                                                               325                                               327                                                 409                                               376                                               357                                               323
Acquisitions                                                                                                                                                         1                                                 1                                                  18                                                20                                               262                                                63
Cash dividends                                                                                                                                                     225                                               225                                                 214                                               214                                               214                                               214
                                                                                                                                                                                                                                                                                                                                                                                                       
OTHER INFORMATION
After-tax return on capital (ROC) (a)                                                                                                                             11.5 %                                            11.5 %                                              11.5 %                                            11.6 %                                            12.1 %                                            11.5 %
Adjusted after-tax ROC (a)                                                                                                                                        12.1 %                                            12.0 %                                              12.0 %                                            12.1 %                                            12.2 %                                            12.4 %
EBITDA (a)                                                                                                                                                         907                                               881                                                 894                                               791                                               880                                               836
EBITDA margin (a)                                                                                                                                                 32.0 %                                            32.3 %                                              33.8 %                                            29.1 %                                            33.0 %                                            33.3 %
Adjusted EBITDA (a)                                                                                                                                          $     922                                         $     887                                           $     894                                         $     891                                         $     880                                         $     836
Adjusted EBITDA margin (a)                                                                                                                                        32.5 %                                            32.5 %                                              33.8 %                                            32.8 %                                            33.0 %                                            33.3 %
Number of employees                                                                                                                                             26,487                                            26,420                                              26,498                                            26,680                                            26,896                                            26,558
                                                                                                                                                                                                                                                                                                                                                                                                       
SEGMENT DATA
SALES
North America                                                                                                                                                $   1,505                                         $   1,458                                           $   1,397                                         $   1,431                                         $   1,411                                         $   1,353
Europe                                                                                                                                                             383                                               356                                                 351                                               366                                               355                                               320
South America                                                                                                                                                      373                                               369                                                 352                                               378                                               358                                               311
Asia                                                                                                                                                               422                                               395                                                 395                                               391                                               393                                               376
Surface Technologies                                                                                                                            151         150           149         150         148         149  
                                                                                                                                          -------------------- ------- -------------------- -------------------- ------- --------------------   -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
     Total sales                                                                                                                                             $   2,834                      $   2,728                        $   2,644                      $   2,716                      $   2,665                      $   2,509  
                                                                                                                                          ==================== ======= ==================== ==================== ======= ====================   ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ====================
OPERATING PROFIT
North America                                                                                                                                                $     378                                         $     357                                           $     359                                         $     363                                         $     359                                         $     349
Europe                                                                                                                                                              73                                                66                                                  71                                                72                                                68                                                62
South America                                                                                                                                                       63                                                64                                                  64                                                68                                                70                                                55
Asia                                                                                                                                                                80                                                75                                                  78                                                68                                                67                                                63
Surface Technologies                                                                                                                             25          26            27          26          24          25  
                                                                                                                                          -------------------- ------- -------------------- -------------------- ------- --------------------   -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
     Segment operating profit                                                                                                                                      619                                               588                                                 599                                               597                                               588                                               554
Transaction costs and other charges                                                                                                             (15 )                           (6 )                              -        (100 )                            -           -  
                                                                                                                                          -------------------- ------- -------------------- -------------------- ------- --------------------   -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
     Total operating profit                                                                                                                                  $     604                      $     582   #                    $     599                      $     497                      $     588                      $     554  
                                                                                                                                          ==================== ======= ==================== ==================== ======= ====================   ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                       
(a)   Non-GAAP measure, see Appendix.
                          
(b)                      2017 includes (i) 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 and (ii) an after-tax charge of $15
                         million ($0.05 per diluted share) in the second 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 5.20% 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 and second 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.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Adjusted Amounts
                     --------------------------------------------------------------------
                                                                                                                                                                           Year-to-date                                                        Second Quarter                                                        First Quarter                                                            Year                                                              Third Quarter                                                        First Quarter                                                            Year                                                              Third Quarter                                                       Second Quarter
                                                                                                                                                                             June 30,
                                                                                                                                                         ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ----------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ----------------------------------------------                        ---------------------------------------------                        ----------------------------------------------
                                                                                                                                                                               2017                                                                 2017                                                                 2017                                                                 2016                                                                  2016                                                                 2016                                                                 2015                                                                  2015                                                                 2015
                                                                                                                                                         ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     -------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     -------------------------------------------------                     ------------------------------------------------                     -------------------------------------------------
                     Adjusted Operating Profit and Operating
                     Profit Margin
                     --------------------------------------------------------------------
                     Reported operating profit                                                                                                                              $ 1,186                                                              $   604                                                              $   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                                                                                                                   21                             15                              6                               -                              -                              -                               -                              -                               -  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                       Total adjustments                                                                                                                      21                             15                              6                             100                            100                              -                             172                             26                             146  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Adjusted operating profit                                                                                                                              $ 1,207                                           $   619                                           $   588                                           $  2,338                                           $   597                                           $   554                                           $  2,493                                           $   620                                           $    626  
                                                                                                                                                         ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Reported percentage change                                                                                                                                   4 %                                                                  3 %
                     Adjusted percentage change                                                                                                                                   6 %                                                                  5 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Reported sales                                                                                                                                         $ 5,562                                                              $ 2,834                                                              $ 2,728                                                              $ 10,534                                                              $ 2,716                                                              $ 2,509                                                              $ 10,776                                                              $ 2,686                                                              $  2,738
                     Adjusted operating profit margin                                                                                                                          21.7 %                                                               21.8 %                                                               21.6 %                                                                22.2 %                                                               22.0 %                                                               22.1 %                                                                23.1 %                                                               23.1 %                                                                22.9 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Adjusted Interest Expense - net
                     --------------------------------------------------------------------
                     Reported interest expense - net                                                                                                                        $    79                                                              $    38                                                              $    41                                                              $    190                                                              $    43                                                              $    65                                                              $    161                                                              $    35                                                              $     40
                     Less: Bond redemption                                                                                                                     -                              -                              -                             (16 )                                               -                            (16 )                                                -                              -                               -  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Adjusted interest expense - net                                                                                                                        $    79                                           $    38                                           $    41                                           $    174                                           $    43                                           $    49                                           $    161                                           $    35                                           $     40  
                                                                                                                                                         ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Adjusted Income Taxes
                     --------------------------------------------------------------------
                     Reported income taxes                                                                                                                                  $   306                                                              $   157                                                              $   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                                                                                                                                  $   306                                           $   157                                           $   149                                           $    586                                           $   149                                           $   139                                           $    653                                           $   164                                           $    164  
                                                                                                                                                         ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Adjusted Effective Tax Rate
                     --------------------------------------------------------------------
                     Reported income before income taxes and equity investments                                                                                             $ 1,107                                                              $   566                                                              $   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                                                                                                                   21                             15                              6                               -                              -                              -                               -                              -                               -  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                       Total adjustments                                                                                                                      21                             15                              6                             116                            100                             16                             172                             26                             146  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Adjusted income before income taxes and equity investments                                                                                             $ 1,128                                           $   581                                           $   547                                           $  2,164                                           $   554                                           $   505                                           $  2,332                                           $   585                                           $    586  
                                                                                                                                                         ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Reported effective tax rate                                                                                                                               27.6 %                                                               27.7 %                                                               27.5 %                                                                26.9 %                                                               26.4 %                                                               27.2 %                                                                28.3 %                                                               27.9 %                                                                29.8 %
                     Adjusted effective tax rate                                                                                                                               27.1 %                                                               27.0 %                                                               27.2 %                                                                27.1 %                                                               26.9 %                                                               27.5 %                                                                28.0 %                                                               28.0 %                                                                28.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Adjusted Noncontrolling Interests
                     --------------------------------------------------------------------
                     Reported noncontrolling interests                                                                                                                      $    29                                                              $    14                                                              $    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                                                                                                                      $    29                                           $    14                                           $    15                                           $     43                                           $    10                                           $    10                                           $     45                                           $    12                                           $     12  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Adjusted Net Income - Praxair, Inc.
                     --------------------------------------------------------------------
                     Reported net income - Praxair, Inc.                                                                                                                    $   795                                                              $   406                                                              $   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                                                                                                                   21                             15                              6                               -                              -                              -                               -                              -                               -  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                       Total adjustments                                                                                                                      21                             15                              6                              76                             66                             10                             130                             18                             112  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Adjusted net income - Praxair, Inc.                                                                                                                    $   816                                           $   421                                           $   395                                           $  1,576                                           $   405                                           $   366                                           $  1,677                                           $   419                                           $    420  
                                                                                                                                                         ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Reported percentage change                                                                                                                                   5 %                                                                  2 %
                     Adjusted percentage change                                                                                                                                   7 %                                                                  6 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Adjusted Diluted EPS
                     --------------------------------------------------------------------
                     Reported diluted EPS                                                                                                                                   $  2.76                                                              $  1.41                                                              $  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                                                                                                                 0.07                           0.05                           0.02                               -                              -                              -                               -                              -                               -  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                       Total adjustments                                                                                                                    0.07                           0.05                           0.02                            0.27                           0.23                           0.04                            0.45                           0.06                            0.39  
                                                                                                                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Adjusted diluted EPS                                                                                                                                   $  2.83                                           $  1.46                                           $  1.37                                           $   5.48                                           $  1.41                                           $  1.28                                           $   5.80                                           $  1.46                                           $   1.45  
                                                                                                                                                         ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Reported percentage change                                                                                                                                   5 %                                                                  1 %
                     Adjusted percentage change                                                                                                                                   6 %                                                                  5 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     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                                                                                                                                                                                              $  5.56                                                              $  5.68
                     Add: Q1 and Q2 Transaction costs (excludes future merger transaction                                                                                                                                        0.07                           0.07  
                     costs)
                                                                                                                                                                                                                              -------------------- ----- --------------------                      -------------------- ----- --------------------
                     2017 adjusted diluted EPS guidance                                                                                                                                                                                          $  5.63                                           $  5.75  
                                                                                                                                                                                                                              -------------------- ----- --------------------                      -------------------- ----- --------------------
                     2016 adjusted diluted EPS (see above for full year reconciliation)                                                                                                                                                          $  5.48                                           $  5.48  
                                                                                                                                                                                                                              -------------------- ----- --------------------                      -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Adjusted percentage change                                                                                                                                                                                                        3 %                                                                  5 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                       2017                                                                                                                                                                                                              2016                                                                                                                                                                                                                                                                                    2015
                                                                                                                                                                 ----------------------------------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                        Q2                                                 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                                                                                                                                            $    701                                                              $    710                                                              $    726                                                              $    788                                                              $    706                                                              $    553                                                              $    791                                                              $    676                                                              $    710                                                              $    518
                     Less: capital expenditures                                                                                                                      (325 )                          (327 )                                             (409 )                          (376 )                          (357 )                          (323 )                                             (387 )                          (405 )                          (352 )                          (397 )
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                         Free Cash Flow                                                                                                                             $    376                                                              $    383                                                              $    317                                                              $    412                                                              $    349                                                              $    230                                                              $    404                                                              $    271                                                              $    358                                                              $    121
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Net Debt, Capital and 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                                                                                                                                                           $  9,367                                                              $  9,368                                                              $  9,515                                                              $  9,842                                                              $  9,956                                                              $  9,404                                                              $  9,231                                                              $  9,480                                                              $  9,313                                                              $  9,360
                     Less: cash and cash equivalents                                                                                                                 (535 )                          (519 )                                             (524 )                          (627 )                          (567 )                          (221 )                                             (147 )                          (136 )                          (136 )                          (117 )
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                         Net debt                                                                                                                                      8,832                                                                 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                                                                    10                                                                    11                                                                    11                                                                    12                                                                   119                                                                   113                                                                   169                                                                   175                                                                   170
                                         Praxair, Inc. shareholders’ equity                                                                                                            5,807                                                                 5,529                                                                 5,021                                                                 5,245                                                                 5,140                                                                 4,888                                                                 4,389                                                                 4,264                                                                 4,964                                                                 5,018
                                         Noncontrolling interests                                                                                                     453          436                             420          393          407          417                             404          380          380          375  
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                            Total equity and redeemable noncontrolling interests                                                                    6,270        5,975                           5,452        5,649        5,559        5,424                           4,906        4,813        5,519        5,563  
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                         Capital                                                                                                                                    $ 15,102                                                              $ 14,824                                                              $ 14,443                                                              $ 14,864                                                              $ 14,948                                                              $ 14,607                                                              $ 13,990                                                              $ 14,157                                                              $ 14,696                                                              $ 14,806
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                         Debt-to-capital                                                                                                             58.5 %                          59.7 %                                             62.3 %                          62.0 %                          62.8 %                          62.9 %                                             64.9 %                          66.0 %                          62.4 %                          62.4 %
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
After-tax Return on Capital and Adjusted
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).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                     Reported net income - Praxair, Inc.                                                                                                                            $    406                                                              $    389                                                              $    406                                                              $    339                                                              $    399                                                              $    356                                                              $    422                                                              $    401                                                              $    308                                                              $    416
                     Add: noncontrolling interests                                                                                                                                        14                                                                    15                                                                    13                                                                     5                                                                    10                                                                    10                                                                     9                                                                    12                                                                    11                                                                    12
                     Add: interest expense - net                                                                                                                                          38                                                                    41                                                                    38                                                                    43                                                                    44                                                                    65                                                                    42                                                                    35                                                                    40                                                                    44
                     Less: tax benefit on interest expense - net *                                                                                                    (11 )                           (12 )                                              (10 )                           (12 )                           (12 )                           (20 )                                              (12 )                           (10 )                           (11 )                           (12 )
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                     Net operating profit after-tax (NOPAT)                                                                                                                         $    447                                                              $    433                                                              $    447                                                              $    375                                                              $    441                                                              $    411                                                              $    461                                                              $    438                                                              $    348                                                              $    460
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                     Pre-tax Adjustments:
                                         Add: Cost reduction program and other charges                                                                                                     -                                                                     -                                                                     -                                                                    96                                                                     -                                                                     -                                                                     -                                                                    19                                                                   146                                                                     -
                                         Add: Pension settlement charge                                                                                                                    -                                                                     -                                                                     -                                                                     4                                                                     -                                                                     -                                                                     -                                                                     7                                                                     -                                                                     -
                                         Add: Transaction costs                                                                                                                           15                                                                     6                                                                     -                                                                     -                                                                     -                                                                     -                                                                     -                                                                     -                                                                     -                                                                     -
                     Less: income taxes on pre-tax adjustments                                                                                                          -            -                               -          (29 )                             -            -            -                              (8 )                           (33 )                             -  
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                     Adjusted NOPAT                                                                                                                                                 $    462                                                              $    439                                                              $    447                                                              $    446                                                              $    441                                                              $    411                                                              $    461                                                              $    456                                                              $    461                                                              $    460
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                     4-quarter trailing NOPAT                                                                                                                                       $  1,702                                                              $  1,696                                                              $  1,674                                                              $  1,688                                                              $  1,751                                                              $  1,658                                                              $  1,707                                                              $  1,616                                                              $  1,700                                                              $  1,864
                     4-quarter trailing adjusted NOPAT                                                                                                                              $  1,794                                                              $  1,773                                                              $  1,745                                                              $  1,759                                                              $  1,769                                                              $  1,789                                                              $  1,838                                                              $  1,879                                                              $  1,945                                                              $  1,996
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                     Ending capital (see above)                                                                                                                                     $ 15,102                                                              $ 14,824                                                              $ 14,443                                                              $ 14,864                                                              $ 14,948                                                              $ 14,607                                                              $ 13,990                                                              $ 14,157                                                              $ 14,696                                                              $ 14,806
                     5-quarter average ending capital                                                                                                                               $ 14,836                                                              $ 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                                                                                                        11.5 %                                                                11.5 %                                                                11.5 %                                                                11.6 %                                                                12.1 %                                                                11.5 %                                                                11.7 %                                                                10.8 %                                                                11.0 %                                                                11.8 %
                     capital)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                     Adjusted after-tax ROC (4-quarter trailing adjusted NOPAT /                                                                                     12.1 %                          12.0 %                                             12.0 %                          12.1 %                          12.2 %                          12.4 %                                             12.6 %                          12.5 %                          12.6 %                          12.7 %
                     5-quarter average capital)
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                               *         Tax benefit on interest expense - net is generally presented using
                                         the reported effective rate.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
EBITDA, Adjusted EBITDA, EBITDA Margin
and Adjusted EBITDA Margin - These
measures are used by investors, financial analysts and management
to assess a company’s profitability.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                     Reported net income - Praxair, Inc.                                                                                                                            $    406                                                              $    389                                                              $    406                                                              $    339                                                              $    399                                                              $    356                                                              $    422                                                              $    401                                                              $    308                                                              $    416
                     Add: noncontrolling interests                                                                                                                                        14                                                                    15                                                                    13                                                                     5                                                                    10                                                                    10                                                                     9                                                                    12                                                                    11                                                                    12
                     Add: interest expense - net                                                                                                                                          38                                                                    41                                                                    38                                                                    43                                                                    44                                                                    65                                                                    42                                                                    35                                                                    40                                                                    44
                     Add: income taxes                                                                                                                                                   157                                                                   149                                                                   152                                                                   120                                                                   146                                                                   133                                                                   163                                                                   156                                                                   131                                                                   162
                     Add: depreciation and amortization                                                                                                               292          287                             285          284          281          272                             275          276          278          277  
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                     EBITDA                                                                                                                                                         $    907                                                              $    881                                                              $    894                                                              $    791                                                              $    880                                                              $    836                                                              $    911                                                              $    880                                                              $    768                                                              $    911
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                     Adjustments:
                                         Add: Cost reduction program and other charges                                                                                                     -                                                                     -                                                                     -                                                                    96                                                                     -                                                                     -                                                                     -                                                                    19                                                                   146                                                                     -
                                         Add: Pension settlement charge                                                                                                                    -                                                                     -                                                                     -                                                                     4                                                                     -                                                                     -                                                                     -                                                                     7                                                                     -                                                                     -
                                         Add: Transaction costs                                                                                                        15            6                               -            -            -            -                               -            -            -            -  
                                                                                                                                                                 -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ --------------------
                     Adjusted EBITDA                                                                                                                                                $    922                                                              $    887                                                              $    894                                                              $    891                                                              $    880                                                              $    836                                                              $    911                                                              $    906                                                              $    914                                                              $    911
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                     Reported sales                                                                                                                                                    2,834                                                                 2,728                                                                 2,644                                                                 2,716                                                                 2,665                                                                 2,509                                                                 2,595                                                                 2,686                                                                 2,738                                                                 2,757
                     EBITDA margin                                                                                                                                                      32.0 %                                                                32.3 %                                                                33.8 %                                                                29.1 %                                                                33.0 %                                                                33.3 %                                                                35.1 %                                                                32.8 %                                                                28.0 %                                                                33.0 %
                     Adjusted EBITDA margin                                                                                                                                             32.5 %                                                                32.5 %                                                                33.8 %                                                                32.8 %                                                                33.0 %                                                                33.3 %                                                                35.1 %                                                                33.7 %                                                                33.4 %                                                                33.0 %

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170727005229r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170727005229/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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