This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Praxair Management Discusses Q2 2012 Results - Earnings Call Transcript

In fact, operating cash flow was a record $75 million, representing more than 25% of our sales.

Our debt-to-capital ratio for the quarter was 53% and debt-to-EBITDA was 1.9x. During the quarter, we paid dividends of $164 million, and repurchased stock of $104 million, net of issuances. $1.3 billion remains available under the share repurchase program authorized in January of this year. After-tax return on capital for the quarter was 14.2%, and reflects the large amount of projects under construction, and therefore, a significant amount of project capital on our balance sheet not yet completed. Return on equity increased to 29.7%.

Now please turn to Slide 4 for our updated earnings guidance. In the third quarter, we see a continuation of similar business trends sequentially, and are issuing earnings guidance in the range $1.35 to $1.40. This guidance reflects the assumption of an additional $0.03 of currency headwind sequentially from the second quarter, as the major currencies swings occurred in late April. On a year-over-year basis, our third quarter earnings expectation reflects negative currency translation impact of about $0.12 per share. As such, for the full year, we've lowered our earnings guidance to $5.60 to $5.70 or about $0.15 to $0.20 from the prior guidance.

The majority of the reduction, or about 2/3, relates to negative currency translation impact based on current exchange rates. Additionally, volumes everywhere outside of North America are falling short of expectations, and we're not anticipating macroeconomic conditions to improve in the second half. Our long-term growth outlook remains strong and we're maintaining our capital spending forecast of $2.1 billion to $2.4 billion against the backlog of $2.5 billion of projects under construction, with committed customer contracts. As these projects start up over the next 2 to 3 years, they will contribute significantly to sales and earnings growth. The backlog remains strong at $2.5 billion, and reflects 5 plant startups during the quarter, as well as signings in 4 new plants under construction for long-term contracts.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs