FORM 10-K - Praxair

financial highlights PRAxAiR
DOLLAR AmOUNTs iN miLLiONs ExcEPT PER shARE DATA
yEAR ENDED DEcEmbER 31, 2008 2007 2006
Sales $ 10,796 $ 9,402 $ 8,324
Operating profit $ 1,883 $ 1,786 $ 1,519
Income $ 1,211 $ 1,177 $ 988
Diluted earnings per share $ 3.80 $ 3.62 $ 3.00
adjusted amounts: (a)
Operating profit $ 2,077
Net income $ 1,336
Diluted earnings per share $ 4.20
other information and ratios
Cash flow from operations $ 2,038 $ 1,958 $ 1,752
Capital expenditures $ 1,611 $ 1,376 $ 1,100
After-tax return on capital (b) 15.3% 15.3% 14.5%
Return on equity (b) 26.8% 24.6% 23.1%
(a) 2008 adjusted amounts are non-GAAP measures and exclude the impact of the cost reduction program and other charges of $177 million ($114 million after-tax and minority interests or $0.36 per diluted share for
the full year) and a pension settlement charge of $17 million ($11 million after-tax or $0.04 per diluted share for the full year). Adjusted amounts are reconciled to reported amounts in the “Financial Highlights —
Adjusted Amounts” section on the inside back cover.
(b) After-tax return on capital and return on equity are non-GAAP measures defined and reconciled in the “Non-GAAP Financial Measures” section in Item 7.
sales
$8,324
$9,402
$10,796
06 07 08
2008 sales by
business segment
3
4
2
5
diluted earnings
( a )
per share
REPORTED
ADjUsTED
1
1. North America 55%
2. South America 18%
3. Europe 14%
4. Asia 8%
5. Praxair Surface
Technologies 5%
$3.00
$3.62
$4.20
06 07 08
2008 sales by
distribution method
3
4
2
cash flow from
operations
1
$1,752
1. Packaged Gases
(cylinders) 32%
2. Merchant
(delivered liquids) 28%
3. On-Site (includes
non-cryogenics) 26%
4. Other 14%
$1,958
$2,038
06 07 08
2008 sales by
end–market
8
7
9
1
after-tax return
on capital
1. Aerospace 2%
2. Chemicals 10%
3. Electronics 7%
4. Energy 13%
5. Food & Beverage 7%
6. Healthcare 10%
7. Manufacturing 24%
8. Metals 16%
9. Other 11%
6
2
5
3
14.5%
4
15.3% 15.3%
06 07 08