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Praxair
Hurricane Impact to Dampen Praxair's 3rd Quarter
Oct. 6, 2005 Praxair, Inc. expects the combined impacts of Hurricanes Katrina and Rita to reduce operating profit by $15 to $18 million ($0.04 of diluted earnings per share) in the third quarter ended September 30, 2005.
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Eight of Praxair’s facilities in Texas and Louisiana were affected and temporarily shut in during Hurricanes Katrina and Rita.
Six of the eight facilities resumed operations within ten days of closure, and the other two are expected to become operational shortly.
Demand for oxygen, nitrogen and hydrogen from Praxair's pipeline systems on the Gulf Coast remains curtailed pending the start-up of customer facilities damaged by the hurricanes or constrained by the availability of electricity, and a shortage of labor in the region.
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Third quarter effects include minor property damage, business interruption costs, insurance adjustments, start-up and shutdown costs, higher distribution costs and higher energy costs. None of the company's facilities sustained significant property damage from either hurricane, although eight facilities in Texas and Louisiana were affected and temporarily shut in during the hurricanes.
As previously disclosed, Praxair also anticipates a third quarter tax charge of approximately $90 million (about $0.27 per diluted share) related to its plan to recapitalize its foreign subsidiaries and repatriate about $1.1 billion of foreign earnings pursuant to the American Jobs Creation Act.
Excluding the hurricane and tax charges, Praxair's third quarter earnings guidance remains unchanged at 61 to 64 cents of diluted earnings per share. Including these charges, diluted earnings per share for the third quarter are forecasted to be in the range of 30 to 33 cents.
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2004 sales of $6.6 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries.