Exhibit 99.1

Praxair Reports Second-Quarter 2018 Results

Financial Highlights

Sales $3.1 billion, 8% above prior-year quarter
Operating profit $0.7 billion, 14% above prior-year quarter, adjusted operating profit 15% higher
EPS $1.65, up 17% versus prior-year quarter, adjusted EPS $1.72, 18% above prior-year quarter
Operating cash flow of $0.8 billion, 26% of sales
Backlog $1.7 billion, up $200 million versus prior quarter

Won three new onsite projects: two in Asia, one in North America
Started up China National Offshore Oil Corporation (CNOOC) project

Continued Progress on Merger with Linde AG

Executed European divestiture agreement
Regulatory filings progressing

DANBURY, Conn.--(BUSINESS WIRE)--July 26, 2018--Praxair, Inc. (NYSE: PX) today reported second-quarter net income of $480 million and diluted earnings per share of $1.65. These results include transaction costs and other charges of $21 million after-tax, or 7 cents of diluted earnings per share, related to the proposed merger with Linde AG. Excluding these costs, adjusted net income was $501 million and diluted earnings per share was $1.72, up 19% and 18% respectively versus the prior year.

Praxair’s sales in the second quarter were $3,061 million, 8% above the prior-year quarter, driven by 2% higher pricing and 5% volume growth across all segments.

Second quarter reported operating profit was $689 million, 14% above the prior-year quarter. Excluding transaction costs and other charges, adjusted operating profit was $713 million, 15% above last year. Reported and adjusted operating profit margins were 22.5% and 23.3%, respectively, improving from 21.4% and 21.9% in the prior-year quarter. For the second quarter, EBITDA margin was 33.1% and adjusted EBITDA margin was 33.9%.

The company generated second-quarter operating cash flow of $790 million, 26% of sales. Capital expenditures were $351 million, dividends paid were $237 million and the company decreased net debt by $318 million.

Commenting on the financial results, Chairman and Chief Executive Officer Steve Angel said, “We continue to see positive economic activity, primarily in Asia and North America where overall business sentiment remains high. This led to strong sales growth across all geographic segments and supported a project backlog increase to $1.7 billion from new on-site wins in electronic and chemical end-markets.

“In the second quarter, we delivered record earnings per share of $1.72 which was 18% above prior year. Operating and EBITDA margins expanded to 23.3% and 33.9% respectively, as incremental volumes and price actions outpaced cost inflation. This profit growth coupled with prudent capital management improved return on capital 150 basis points to 13.6%.

“In addition to the strong performance, we made substantial progress on the merger with Linde. We achieved additional regulatory approvals and earlier this month, we announced an agreement to sell the majority of our European business in support of our efforts to gain EC approval.

“I am proud of the accomplishments and focus from Praxair employees worldwide and look forward to integrating our organization with Linde to create an even more valuable, high-performing company.”

Following is additional detail on second-quarter 2018 results by segment.

In North America, second-quarter sales were $1,594 million, 6% above the prior-year quarter, driven primarily by higher price attainment and strong volumes in the manufacturing, chemicals and food and beverage end-markets. Operating profit of $432 million grew 14% above the prior year due to higher volumes and price.

Europe sales grew 16% in the second quarter to $444 million or 5% excluding currency effects and higher cost pass-through. Underlying sales growth reflects increased business activity and higher pricing in Italy, Spain and Germany. Second-quarter operating profit of $87 million rose 18% from the prior-year period driven by higher volumes to all major end-markets and price.

In South America, second-quarter sales were $349 million, 4% above the prior-year quarter, excluding currency translation. Sales growth was driven by higher volumes to metals and healthcare end-markets. Operating profit was $56 million.

Sales in Asia were $502 million in the quarter, up 19% from the prior year. Excluding currency and higher cost pass-through, sales grew 14% from the prior year, driven by 3% price, project start-ups and higher organic volumes in China, Korea and India. Operating profit was $107 million, 34% above prior year, reflecting continued strong operating leverage from incremental volume, price and ongoing productivity initiatives.

Praxair Surface Technologies had second-quarter sales of $172 million, up 14% from prior-year quarter. Overall strong pricing and demand, including further ramping of EBPVD coating capacity serving the aviation market, drove higher sales and margin expansion. Operating profit of $31 million was up 24% versus prior-year quarter.

Praxair, Inc. is a leading industrial gas company in North and South America and one of the largest worldwide. With market capitalization of approximately $40 billion and 2017 sales of $11 billion, the company employs over 26,000 people globally and has been named to the Dow Jones® World Sustainability Index for 15 consecutive years. Praxair produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Our 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. For more information about the company, please visit our website 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.

Effective January 1, 2018, Accounting Standards Update 2017-07 requires that pension costs, excluding service cost, be reported below the operating profit line in the income statement. Previously, these pension accounting impacts were included in the income statement primarily in selling, general and administrative expenses. Accordingly, such costs have been reclassified to “Net pension and OPEB cost (benefit), excluding service cost” in the income statement. Also, prior period full-year and quarterly results, including the income statement and segment operating profit, have been reclassified to conform to the current year presentation. There was no impact on previously reported net income or earnings per share.

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 26, 2018 at 11:00 am Eastern Time. The number is (631) 485-4849 – Conference ID: 6768465. 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.

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, regulatory or other limitations imposed as a result of the proposed business combination; the success of the business following the proposed business combination; the ability to successfully integrate the Praxair and Linde businesses; 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, including the impact of the U.S. Tax Cuts and Jobs Act of 2017; 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 included in the Registration Statement on Form S-4 (which Registration Statement was declared effective on August 14, 2017) filed by Linde plc 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 10 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
	2018		2017		2018		2017 (b)		2018		2017		2018		2017
Quarter Ended June 30
Reported GAAP Amounts	$	3,061	$	2,834	$	689	$	606	$	480	$	406	$	1.65	$	1.41
Transaction costs and other charges (a)		—		—		24		15		21		15		0.07		0.05
Adjusted amounts	$	3,061	$	2,834	$	713	$	621	$	501	$	421	$	1.72	$	1.46

Year To Date June 30
Reported GAAP Amounts	$	6,060	$	5,562	$	1,342	$	1,173	$	942	$	795	$	3.24	$	2.76
Transaction costs (a)		—		—		43		21		39		21		0.13		0.07
Adjusted amounts	$	6,060	$	5,562	$	1,385	$	1,194	$	981	$	816	$	3.37	$	2.83

(a) Charges primarily for transaction costs related to the potential Linde merger.

(b) During the first quarter 2018, Praxair adopted accounting guidance on the presentation of net periodic pension and postretirement benefit costs which requires non-service related costs be presented outside of operating profit. As a result, non-service related pension and postretirement benefit costs are now presented in the consolidated statements of income in "Net pension and OPEB cost (benefit), excluding service cost." Prior period information, including segment operating profit, has been reclassified to conform with current year presentation. The adoption of this guidance did not impact "Net Income - Praxair, Inc."

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,
	2018		2017		2018		2017

SALES	$	3,061	$	2,834	$	6,060	$	5,562
Cost of sales		1,723		1,599		3,400		3,148
Selling, general and administrative		307		305		617		595
Depreciation and amortization		311		292		622		579
Research and development		24		23		48		46
Transaction costs and other charges		24		15		43		21
Other income (expense) - net		17		6		12		—
OPERATING PROFIT		689		606		1,342		1,173
Interest expense - net		44		38		90		79
Net pension and OPEB cost (benefit), excluding service cost		2		2		4		(13)
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS		643		566		1,248		1,107
Income taxes		158		157		306		306
INCOME BEFORE EQUITY INVESTMENTS		485		409		942		801
Income from equity investments		14		11		29		23
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)		499		420		971		824
Less: noncontrolling interests		(19)		(14)		(29)		(29)
NET INCOME - PRAXAIR, INC.	$	480	$	406	$	942	$	795

PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS

Basic earnings per share	$	1.67	$	1.42	$	3.27	$	2.78

Diluted earnings per share	$	1.65	$	1.41	$	3.24	$	2.76

Cash dividends	$	0.825	$	0.7875	$	1.65	$	1.575

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic shares outstanding (000's)		287,803		286,090		287,654		285,799
Diluted shares outstanding (000's)		290,908		288,535		290,926		288,067

Note: See page 4 for a reconciliation to adjusted amounts which are Non-GAAP.

PRAXAIR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions of dollars)
(UNAUDITED)

	June 30,		December 31,
	2018		2017
ASSETS
Cash and cash equivalents	$	479	$	617
Accounts receivable - net		1,877		1,804
Inventories		606		614
Prepaid and other current assets		202		250
TOTAL CURRENT ASSETS		3,164		3,285
Property, plant and equipment - net		11,701		12,057
Goodwill		3,200		3,233
Other intangibles - net		525		553
Other long-term assets		1,246		1,308
TOTAL ASSETS	$	19,836	$	20,436

LIABILITIES AND EQUITY
Accounts payable	$	967	$	972
Short-term debt		250		238
Current portion of long-term debt		979		979
Other current liabilities		1,083		1,118
TOTAL CURRENT LIABILITIES		3,279		3,307
Long-term debt		7,229		7,783
Other long-term liabilities		2,786		2,824
TOTAL LIABILITIES		13,294		13,914

REDEEMABLE NONCONTROLLING INTERESTS		14		11

PRAXAIR, INC. SHAREHOLDERS' EQUITY:
Common stock		4		4
Additional paid-in capital		4,066		4,084
Retained earnings		13,690		13,224
Accumulated other comprehensive income (loss)		(4,596)		(4,098)
Less: Treasury stock, at cost		(7,137)		(7,196)
Total Praxair, Inc. Shareholders' Equity		6,027		6,018
Noncontrolling interests		501		493
TOTAL EQUITY		6,528		6,511
TOTAL LIABILITIES AND EQUITY	$	19,836	$	20,436

PRAXAIR, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of dollars)
(UNAUDITED)

	Quarter Ended						Year to Date
	June 30,						June 30,
	2018			2017			2018			2017
OPERATIONS
Net income - Praxair, Inc.	$	480		$	406		$	942		$	795
Noncontrolling interests		19			14			29			29
Net income (including noncontrolling interests)		499			420			971			824

Adjustments to reconcile net income to net cash provided
by operating activities:
Transaction costs and other charges, net of payments		1			11			15			17
Depreciation and amortization		311			292			622			579
Accounts Receivable		(65	)		(46	)		(147	)		(95	)
Inventory		(8	)		(3	)		(10	)		(5	)
Payables and accruals		61			18			(6	)		(24	)
Pension contributions		(6	)		(3	)		(10	)		(6	)
Deferred income taxes and other		(3	)		12			43			121
Net cash provided by operating activities		790			701			1,478			1,411

INVESTING
Capital expenditures		(351	)		(325	)		(676	)		(652	)
Acquisitions, net of cash acquired		—			(1	)		—			(2	)
Divestitures and asset sales		62			13			69			17
Net cash used for investing activities		(289	)		(313	)		(607	)		(637	)

FINANCING
Debt increase (decrease) - net		(277	)		(132	)		(492	)		(305	)
Issuances of common stock		15			44			44			70
Purchases of common stock		(1	)		—			(1	)		(11	)
Cash dividends - Praxair, Inc. shareholders		(237	)		(225	)		(474	)		(450	)
Noncontrolling interest transactions and other		(16	)		(71	)		(22	)		(84	)
Net cash provided by (used for) financing activities		(516	)		(384	)		(945	)		(780	)

Effect of exchange rate changes on cash and
cash equivalents		(51	)		12			(64	)		17

Change in cash and cash equivalents		(66	)		16			(138	)		11
Cash and cash equivalents, beginning-of-period		545			519			617			524

Cash and cash equivalents, end-of-period	$	479		$	535		$	479		$	535

PRAXAIR, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Millions of dollars)
(UNAUDITED)

	Quarter Ended						Year to Date
	June 30,						June 30,
	2018			2017			2018			2017
SALES
North America	$	1,594		$	1,505		$	3,157		$	2,963
Europe		444			383			872			739
South America		349			373			714			742
Asia		502			422			978			817
Surface Technologies		172			151			339			301
Consolidated sales	$	3,061		$	2,834		$	6,060		$	5,562

OPERATING PROFIT
North America	$	432		$	378		$	838		$	735
Europe		87			74			167			141
South America		56			64			110			112
Asia		107			80			211			155
Surface Technologies		31			25			59			51
Segment operating profit	$	713		$	621		$	1,385		$	1,194
Transaction costs and other charges		(24	)		(15	)		(43	)		(21	)
Total operating profit	$	689		$	606		$	1,342		$	1,173

PRAXAIR, INC. AND SUBSIDIARIES
QUARTERLY FINANCIAL SUMMARY
(Millions of dollars, except per share data)
(UNAUDITED)

	2018 (b)						2017 (c, d)
	Q2			Q1			Q4			Q3			Q2			Q1
FROM THE INCOME STATEMENT
Sales	$	3,061		$	2,999		$	2,953		$	2,922		$	2,834		$	2,728
Cost of sales		1,723			1,677			1,661			1,652			1,599			1,549
Selling, general and administrative		307			310			312			300			305			290
Depreciation and amortization		311			311			307			298			292			287
Research and development		24			24			24			23			23			23
Transaction costs and other charges		24			19			17			14			15			6
Other income (expense) - net		17			(5	)		7			(3	)		6			(6	)
Operating profit		689			653			639			632			606			567
Interest expense - net		44			46			41			41			38			41
Net pension and OPEB cost (benefit), excluding service cost		2			2			3			6			2			(15	)
Income taxes		158			148			558			162			157			149
Income from equity investments		14			15			12			12			11			12
Net income (including noncontrolling interests)		499			472			49			435			420			404
Less: noncontrolling interests		(19	)		(10	)		(16	)		(16	)		(14	)		(15	)
Net income - Praxair, Inc.	$	480		$	462		$	33		$	419		$	406		$	389

PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Diluted earnings per share	$	1.65		$	1.59		$	0.11		$	1.45		$	1.41		$	1.35
Cash dividends per share	$	0.8250		$	0.8250		$	0.7875		$	0.7875		$	0.7875		$	0.7875
Diluted weighted average shares outstanding (000's)		290,908			290,809			290,456			289,216			288,535			287,384

ADJUSTED AMOUNTS (a)
Operating profit	$	713		$	672		$	656		$	646		$	621		$	573
Operating margin		23.3	%		22.4	%		22.2	%		22.1	%		21.9	%		21.0	%
Net Income	$	501		$	480		$	441		$	433		$	421		$	395
Diluted earnings per share	$	1.72		$	1.65		$	1.52		$	1.50		$	1.46		$	1.37

FROM THE BALANCE SHEET
Net debt (a)	$	7,979		$	8,297		$	8,383		$	8,630		$	8,832		$	8,849
Capital (a)	$	14,521		$	15,194		$	14,905		$	15,372		$	15,102		$	14,824

FROM THE STATEMENT OF CASH FLOWS
Cash flow from operations	$	790		$	688		$	836		$	794		$	701		$	710
Cash flow provided by (used for) investing activities		(289	)		(318	)		(346	)		(331	)		(313	)		(324	)
Cash flow provided by (used for) financing activities		(516	)		(429	)		(473	)		(403	)		(384	)		(396	)
Capital expenditures		351			325			339			320			325			327
Acquisitions		—			—			15			16			1			1
Cash dividends		237			237			226			225			225			225

OTHER INFORMATION
After-tax return on capital (ROC) (a)		10.5	%		9.9	%		9.5	%		12.0	%		11.5	%		11.5	%
Adjusted after-tax ROC (a)		13.6	%		13.0	%		12.5	%		12.3	%		12.1	%		12.0	%
EBITDA (a)	$	1,014		$	979		$	958		$	942		$	909		$	866
EBITDA margin (a)		33.1	%		32.6	%		32.4	%		32.2	%		32.1	%		31.7	%
Adjusted EBITDA (a)	$	1,038		$	998		$	975		$	956		$	924		$	872
Adjusted EBITDA margin (a)		33.9	%		33.3	%		33.0	%		32.7	%		32.6	%		32.0	%
Number of employees		26,658			26,550			26,461			26,531			26,487			26,420

SEGMENT DATA
SALES
North America	$	1,594		$	1,563		$	1,542		$	1,518		$	1,505		$	1,458
Europe		444			428			412			407			383			356
South America		349			365			370			389			373			369
Asia		502			476			470			451			422			395
Surface Technologies		172			167			159			157			151			150
Total sales	$	3,061		$	2,999		$	2,953		$	2,922		$	2,834		$	2,728
OPERATING PROFIT
North America		432			406			396			386			378			357
Europe		87			80			81			79			74			67
South America		56			54			61			66			64			48
Asia		107			104			90			88			80			75
Surface Technologies		31			28			28			27			25			26
Segment operating profit		713			672			656			646			621			573
Transaction costs and other charges		(24	)		(19	)		(17	)		(14	)		(15	)		(6	)
Total operating profit	$	689		$	653		$	639		$	632		$	606		$	567

(a) Non-GAAP measure, see Appendix.

(b) 2018 includes (i) after-tax charges of $21 million ($0.07 per diluted share) in the second quarter primarily for transaction costs related to the potential Linde merger, and (ii) a charge of $18 million after-tax and noncontrolling interests ($0.06 per diluted share) in the first quarter primarily for transaction costs related to the potential Linde merger.

(c) 2017 includes (i) after-tax charges of $6 million ($0.02 per diluted share), $15 million ($0.05 per diluted share), $13 million ($0.05 per diluted share), and $14 million ($0.05 per diluted share) in the first, second, third, and fourth quarters, respectively for transaction costs related to the potential Linde merger, (ii) a pension settlement charge of $2 million ($1 million after-tax) in the third quarter related to lump sum benefit payments made from an international pension plan, and (iii) income tax charges, net of $394 million ($1.36 per diluted share) in the fourth quarter due to U.S. tax reform.

(d) As a result of the adoption of new accounting guidance on the presentation of net periodic pension and postretirement benefit costs, prior period information has been reclassified to conform with current year presentation.

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 2018 transaction costs and other charges, 2017 transaction costs and other charges, 2017 third quarter pension settlement, 2017 fourth quarter U.S. tax reform, 2016 third quarter cost reduction program and pension settlement, and 2016 first quarter bond redemption.

Adjusted Amounts
	Year-to-date June 30,			Second Quarter			First Quarter			Year			Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Year			Third Quarter			First Quarter
	2018			2018			2018			2017			2017			2017			2017			2017			2016			2016			2016
Adjusted Operating Profit and Operating Profit Margin
Reported operating profit	$	1,342		$	689		$	653		$	2,444		$	639		$	632		$	606		$	567		$	2,247		$	505		$	554
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			96			96			—
Add: Transaction costs and other charges		43			24			19			52			17			14			15			6			—			—			—
Total adjustments		43			24			19			52			17			14			15			6			96			96			—
Adjusted operating profit	$	1,385		$	713		$	672		$	2,496		$	656		$	646		$	621		$	573		$	2,343		$	601		$	554

Reported percentage change		14	%		14	%
Adjusted percentage change		16	%		15	%

Reported sales	$	6,060		$	3,061		$	2,999		$	11,437		$	2,953		$	2,922		$	2,834		$	2,728		$	10,534		$	2,716		$	2,509
Adjusted operating profit margin		22.9	%		23.3	%		22.4	%		21.8	%		22.2	%		22.1	%		21.9	%		21.0	%		22.2	%		22.1	%		22.1	%

Adjusted Interest Expense - net
Reported interest expense - net	$	90		$	44		$	46		$	161		$	41		$	41		$	38		$	41		$	190		$	43		$	65
Less: Bond redemption		—			—			—			—			—			—			—			—			(16	)		—			(16	)
Adjusted interest expense - net	$	90		$	44		$	46		$	161		$	41		$	41		$	38		$	41		$	174		$	43		$	49

Adjusted Net Pension and OPEB cost (benefit), excluding service cost
Reported net pension and OPEB cost (benefit), excluding service cost	$	4		$	2		$	2		$	(4	)	$	3		$	6		$	2		$	(15	)		9			8			—
Less: Pension settlement charge		—			—			—			(2	)		—			(2	)		—			—			(4	)		(4	)		—
Adjusted net Pension and OPEB cost (benefit), excluding service cost	$	4		$	2		$	2		$	(6	)	$	3		$	4		$	2		$	(15	)	$	5		$	4		$	—

Adjusted Income Taxes
Reported income taxes	$	306		$	158		$	148		$	1,026		$	558		$	162		$	157		$	149		$	551		$	120		$	133
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			28			28			—
Add: Bond redemption		—			—			—			—			—			—			—			—			6			—			6
Add: Pension settlement charge		—			—			—			1			—			1			—			—			1			1			—
Add: Tax reform		—			—			—			(394	)		(394	)		—			—			—			—			—			—
Add: Transaction costs and other charges		5			3			2			4			3			1			—			—			—			—			—
Total adjustments		5			3			2			(389	)		(391	)		2			—			—			35			29			6
Adjusted income taxes	$	311		$	161		$	150		$	637		$	167		$	164		$	157		$	149		$	586		$	149		$	139

Adjusted Effective Tax Rate
Reported income before income taxes and equity investments	$	1,248		$	643		$	605		$	2,287		$	595		$	585		$	566		$	541		$	2,048		$	454		$	489
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			96			96			—
Add: Bond redemption		—			—			—			—			—			—			—			—			16			—			16
Add: Pension settlement charge		—			—			—			2			—			2			—			—			4			4			—
Add: Transaction costs and other charges		43			24			19			52			17			14			15			6			—			—			—
Total adjustments		43			24			19			54			17			16			15			6			116			100			16
Adjusted income before income taxes and equity investments	$	1,291		$	667		$	624		$	2,341		$	612		$	601		$	581		$	547		$	2,164		$	554		$	505

Reported effective tax rate		24.5	%		24.6	%		24.5	%		44.9	%		93.8	%		27.7	%		27.7	%		27.5	%		26.9	%		26.4	%		27.2	%
Adjusted effective tax rate		24.1	%		24.1	%		24.0	%		27.2	%		27.3	%		27.3	%		27.0	%		27.2	%		27.1	%		26.9	%		27.5	%

Adjusted Noncontrolling Interests
Reported noncontrolling interests	$	29		$	19		$	10		$	61		$	16		$	16		$	14		$	15		$	38		$	5		$	10
Add: Cost reduction program and other charges, net		(1	)		—			(1	)		—			—			—			—			—			5			5			—
Total adjustments		(1	)		—			(1	)		—			—			—			—			—			5			5			—
Adjusted noncontrolling interests	$	28		$	19		$	9		$	61		$	16		$	16		$	14		$	15		$	43		$	10		$	10

Adjusted Net Income - Praxair, Inc.
Reported net income - Praxair, Inc.	$	942		$	480		$	462		$	1,247		$	33		$	419		$	406		$	389		$	1,500		$	339		$	356
Add: Cost reduction program and other charges, net		1			—			1			—			—			—			—			—			63			63			—
Add: Bond redemption		—			—			—			—			—			—			—			—			10			—			10
Add: Pension settlement charge		—			—			—			1			—			1			—			—			3			3			—
Add: Tax reform		—			—			—			394			394			—			—			—			—			—			—
Add: Transaction costs and other charges		38			21			17			48			14			13			15			6			—			—			—
Total adjustments		39			21			18			443			408			14			15			6			76			66			10
Adjusted net income - Praxair, Inc.	$	981		$	501		$	480		$	1,690		$	441		$	433		$	421		$	395		$	1,576		$	405		$	366

Reported percentage change		18	%		18	%
Adjusted percentage change		20	%		19	%

Adjusted Diluted EPS
Reported diluted EPS	$	3.24		$	1.65		$	1.59		$	4.32		$	0.11		$	1.45		$	1.41		$	1.35		$	5.21		$	1.18		$	1.24
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			—			0.22			0.22			—
Add: Bond redemption		—			—			—			—			—			—			—			—			0.04			—			0.04
Add: Pension settlement charge		—			—			—			—			—			—			—			—			0.01			0.01			—
Add: Tax reform					—			—			1.36			1.36			—			—			—			—			—			—
Add: Transaction costs and other charges		0.13			0.07			0.06			0.17			0.05			0.05			0.05			0.02			—			—			—
Total adjustments		0.13			0.07			0.06			1.53			1.41			0.05			0.05			0.02			0.27			0.23			0.04
Adjusted diluted EPS	$	3.37		$	1.72		$	1.65		$	5.85		$	1.52		$	1.50		$	1.46		$	1.37		$	5.48		$	1.41		$	1.28

Reported percentage change		17	%		17	%
Adjusted percentage change		19	%		18	%

	2018						2017												2016
	Q2			Q1			Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1 (a)

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	$	790		$	688		$	836		$	794		$	701		$	710		$	726		$	788		$	706		$	569
Less: capital expenditures		(351	)		(325	)		(339	)		(320	)		(325	)		(327	)		(409	)		(376	)		(357	)		(323	)
Free Cash Flow	$	439		$	363		$	497		$	474		$	376		$	383		$	317		$	412		$	349		$	246

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	$	8,458		$	8,842		$	9,000		$	9,237		$	9,367		$	9,368		$	9,515		$	9,842		$	9,956		$	9,404
Less: cash and cash equivalents		(479	)		(545	)		(617	)		(607	)		(535	)		(519	)		(524	)		(627	)		(567	)		(221	)
Net debt		7,979			8,297			8,383			8,630			8,832			8,849			8,991			9,215			9,389			9,183
Equity and redeemable noncontrolling interests:
Redeemable noncontrolling interests		14			13			11			11			10			10			11			11			12			119
Praxair, Inc. shareholders' equity		6,027			6,368			6,018			6,256			5,807			5,529			5,021			5,245			5,140			4,888
Noncontrolling interests		501			516			493			475			453			436			420			393			407			417
Total equity and redeemable noncontrolling interests		6,542			6,897			6,522			6,742			6,270			5,975			5,452			5,649			5,559			5,424
Capital	$	14,521		$	15,194		$	14,905		$	15,372		$	15,102		$	14,824		$	14,443		$	14,864		$	14,948		$	14,607

Debt-to-capital		54.9	%		54.6	%		56.2	%		56.1	%		58.5	%		59.7	%		62.3	%		62.0	%		62.8	%		62.9	%

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.	$	480		$	462		$	33		$	419		$	406		$	389		$	406		$	339		$	399		$	356
Add: noncontrolling interests		19			10			16			16			14			15			13			5			10			10
Add: interest expense - net		44			46			41			41			38			41			38			43			44			65
Less: tax benefit on interest expense - net *		(11	)		(11	)		(11	)		(11	)		(11	)		(12	)		(10	)		(12	)		(12	)		(20	)
Net operating profit after-tax (NOPAT)	$	532		$	507		$	79		$	465		$	447		$	433		$	447		$	375		$	441		$	411

Pre-tax Adjustments:
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			96			—			—
Add: Pension settlement charge		—			—			—			2			—			—			—			4			—			—
Add: Transaction costs and other charges		24			19			17			14			15			6			—			—			—			—
Less: income taxes on pre-tax adjustments		(3	)		(2	)		(3	)		—			—			—			—			(29	)		—			—
Add: Tax reform net income tax charge		—			—			394			—			—			—			—			—			—			—
Adjusted NOPAT	$	553		$	524		$	487		$	481		$	462		$	439		$	447		$	446		$	441		$	411

4-quarter trailing NOPAT	$	1,583		$	1,497		$	1,424		$	1,792		$	1,702		$	1,696		$	1,674		$	1,688		$	1,751		$	1,658
4-quarter trailing adjusted NOPAT	$	2,045		$	1,953		$	1,869		$	1,829		$	1,794		$	1,773		$	1,745		$	1,759		$	1,769		$	1,789

Ending capital (see above)	$	14,521		$	15,194		$	14,905		$	15,372		$	15,102		$	14,824		$	14,443		$	14,864		$	14,948		$	14,607
5-quarter average ending capital	$	15,019		$	15,079		$	14,929		$	14,921		$	14,836		$	14,737		$	14,570		$	14,513		$	14,480		$	14,451

After-tax ROC (4-quarter trailing NOPAT / 5-quarter average capital)		10.5	%		9.9	%		9.5	%		12.0	%		11.5	%		11.5	%		11.5	%		11.6	%		12.1	%		11.5	%
Adjusted after-tax ROC (4-quarter trailing adjusted NOPAT / 5-quarter average capital)		13.6	%		13.0	%		12.5	%		12.3	%		12.1	%		12.0	%		12.0	%		12.1	%		12.2	%		12.4	%

* 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.	$	480		$	462		$	33		$	419		$	406		$	389		$	406		$	339		$	399		$	356
Add: noncontrolling interests		19			10		$	16			16			14			15			13			5			10			10
Add: interest expense - net		44			46		$	41			41			38			41			38			43			44			65
Add: net pension and OPEB cost (benefit), excluding service cost		2			2			3			6			2			(15	)		(1	)		8			2			—
Add: income taxes		158			148			558			162			157			149			152			120			146			133
Add: depreciation and amortization		311			311			307			298			292			287			285			284			281			272
EBITDA	$	1,014		$	979		$	958		$	942		$	909		$	866		$	893		$	799		$	882		$	836

Adjustments:
Add: Cost reduction program and other charges, net		—			—			—			—			—			—			—			96			—			—
Add: Transaction costs and other charges		24			19			17			14			15			6			—			—			—			—
Adjusted EBITDA	$	1,038		$	998		$	975		$	956		$	924		$	872		$	893		$	895		$	882		$	836

Reported sales		3,061			2,999			2,953			2,922			2,834			2,728			2,644			2,716			2,665			2,509
EBITDA margin		33.1	%		32.6	%		32.4	%		32.2	%		32.1	%		31.7	%		33.8	%		29.4	%		33.1	%		33.3	%
Adjusted EBITDA margin		33.9	%		33.3	%		33.0	%		32.7	%		32.6	%		32.0	%		33.8	%		33.0	%		33.1	%		33.3	%

(a) 2016 first quarter operating cash flow was restated for the reclassification of $16 million cash payment related to the bond redemption from operating cash flow to financing cash flow on the statement of cash flow pursuant to new accounting guidance adopted in the first quarter of 2018 relating to the classification of certain cash receipts and payments.

CONTACT:
Praxair Media
Lisa Esneault, 203-837-2448
lisa_esneault@praxair.com
or
Praxair Investors
Juan Pelaez, 203-837-2213
juan_pelaez@praxair.com

PRAXAIR INC 8-K