January to March 2011: Profitable growth continues for Linde
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Linde AG /
January to March 2011: Profitable growth continues for Linde
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* Group sales grow 14.9 percent to EUR 3.325 bn
* Group operating profit* increases at a faster rate than sales, by 18.7
percent to EUR 761 m
* Group operating margin up 80 basis points to 22.9 percent
* Increase in earnings per share from EUR 1.17 to EUR 1.67
* Holistic concept for sustainable process optimisation and efficiency gains
(HPO) is proving effective
* Group outlook for 2011 confirmed: growth in sales and earnings expected
Munich, 4 May 2011 - The technology company The Linde Group has made a good
start to the new financial year, achieving significant increases in Group sales
and Group operating profit in the first three months of 2011. "We have again
seen profitable growth and are well on the way to achieving our targets," said
Professor Dr Wolfgang Reitzle, Chief Executive Officer of Linde AG. "We confirm
our Group outlook and expect to achieve higher levels of Group sales and Group
operating profit in the 2011 financial year than in 2010." CEO Reitzle is also
confident about the medium-term future of the Group: "We are well-positioned and
will take full advantage of the opportunities available, especially in the
environmental and energy sectors, the growth markets of Asia and the medical
gases business."
In the first quarter of 2011, Group sales rose by 14.9 percent to EUR 3.325 bn,
compared with sales for the first quarter of 2010 of EUR 2.894 bn. After
adjusting for exchange rate effects, the increase in sales was 10.6 percent.
Linde has continued to improve its profitability, achieving an 18.7 percent
increase in Group operating profit* to EUR 761 m (2010: EUR 641 m). Operating
profit has increased at a faster rate than sales. The Group operating margin was
22.9 percent, 80 basis points above the figure for the comparable prior-year
period of 22.1 percent. The ongoing improvement in Linde's profitability
demonstrates that the Group is continuing to make progress with the determined
implementation of HPO (High Performance Organisation), its holistic concept for
sustainable process optimisation and efficiency gains.
Earnings before taxes on income (EBT) rose significantly, by 40.3 percent to EUR
397 m (2010: EUR 283 m). Earnings after tax increased by 42.3 percent to EUR
303 m (2010: EUR 213 m). After adjusting for minority interests, earnings
attributable to Linde AG shareholders were EUR 284 m (2010: EUR 198 m), giving
earnings per share of EUR 1.67 (2010: EUR 1.17). On an adjusted basis, i.e.
after adjusting for the effects of the purchase price allocation from the BOC
acquisition, earnings per share stood at EUR 1.88 (2010: EUR 1.41).
Gases Division
The improvement in the economic situation in the first quarter of 2011 also
resulted in ever-rising demand in the worldwide gases business. Linde was able
to benefit from this positive trend in all product areas, due to the Group's
global footprint and its strong position especially in the emerging economies.
Sales in the Gases Division in the first three months of 2011 grew 13.8 percent
to EUR 2.662 bn, compared with the figure of EUR 2.340 bn for the first quarter
of 2010. On a comparable basis, i.e. after adjusting for exchange rate effects,
changes in the price of natural gas and changes to Group structure, sales were
up 8.3 percent.
The growth in operating profit of the Gases Division of 16.3 percent to EUR 727
m (2010: EUR 625 m) once again outpaced the increase in sales. The operating
margin improved by 60 basis points to 27.3 percent (2010: 26.7 percent). This
latest increase in profitability was also due to the positive impact of HPO's
efficiency improvement and process optimisation measures. Also in evidence here
was a higher level of capacity utilisation in production plants in the first
quarter of 2011 than in the first quarter of 2010.
Business trends in the various operating segments of the Gases Division reveal
that the dynamics of economic activities still varies from region to region. In
the first three months of 2011, the highest growth rates were once again to be
seen in Asia (especially in China and India) and in South America. At the same
time, the economic recovery also continued in the mature markets, such as the US
and Western Europe.
In the EMEA operating segment (Europe, Middle East, Africa), Linde achieved
sales growth of 10.2 percent in the first quarter of 2011 to EUR 1.393 bn (2010:
EUR 1.264 bn). On a comparable basis, the growth in sales was 6.0 percent.
Operating profit again increased at a faster rate than sales, rising 12.5
percent to EUR 395 m (2010: EUR 351 m). This resulted in an operating margin of
28.4 percent, 60 basis points above the figure for the prior-year period of
27.8 percent. Here too, the determined implementation of the various
productivity improvement and process standardisation initiatives which form part
of the HPO programme made a positive contribution.
Linde achieved a high rate of growth in the Asia/Pacific operating segment,
boosted by continuing economic dynamism in Asia and based on its leading
position in these markets. In the first quarter of 2011, sales in this region
grew 22.5 percent to EUR 707 m (2010: EUR 577 m). On a comparable basis, the
increase in sales was 11.0 percent. Operating profit rose by 21.0 percent to EUR
196 m (2010: EUR 162 m). At 27.7 percent (2010: 28.1 percent), the operating
margin again reached a very high level. To sustain this level of profitability,
Linde is continuing here too with the implementation of its HPO concept.
In the Americas operating segment, sales in the first three months of 2011 grew
12.8 percent to EUR 580 m (2010: EUR 514 m). On a comparable basis, the increase
in sales was 11.1 percent. In this region too, operating profit rose at a faster
rate than sales, by 21.4 percent to EUR 136 m (2010: EUR 112 m). The operating
margin was 23.4 percent, an increase of 160 basis points over the figure for the
first quarter of 2010 of 21.8 percent. Beside positive one-off effects, it has
been the progress achieved by Linde in the implementation of HPO, which
contributed to this substantial increase in the margin.
The performance in the individual product areas reflects the overall positive
trend in the Gases Division in the first quarter of 2011. Linde achieved its
highest rate of growth in the on-site business, where it supplies gases on site
to major customers. Sales in this product area rose on a comparable basis by
12.1 percent to EUR 659 m (2010: EUR 588 m). The cylinder gas business continued
its steady upward trend, achieving growth of 7.5 percent to EUR 1.075 bn (2010:
EUR 1.000 bn). Sales in the liquefied gases business in the first quarter
increased by 7.3 percent to EUR 636 m (2010: EUR 593 m). The Healthcare product
area, the medical gases business and related maintenance and advisory services,
again saw steady growth, achieving sales of EUR 292 m, 5.8 percent above the
sales figure for the prior-year quarter of EUR 276 m.
Gases Division - Outlook
Linde remains committed to its original target in the gases business of growing
at a faster pace than the market and continuing to improve productivity. In the
on-site business, Linde has a full project pipeline, which will make a
significant contribution to sales and earnings in the 2011 financial year. The
liquefied gases and cylinder gas business is set to benefit from the continuing
general economic recovery. Linde expects the positive business trend in the
Healthcare product segment to continue, and expects a higher rate of sales
growth than in 2010. Against this background, Linde anticipates that sales
generated by the Gases Division in the 2011 financial year will exceed sales
achieved in 2010 and that operating profit will grow at a faster pace than
sales.
Engineering Division
The market environment in the international large-scale engineering business
continued to stabilise in the first quarter of 2011. In the four main product
segments (olefin plants, natural gas plants, air separation plants, hydrogen and
synthesis gas plants), Linde saw a revival in investment activity.
Sales in the Engineering Division in the first quarter of 2011 increased by
14.3 percent to EUR 591 m (2010: EUR 517 m). The successful execution of a
number of individual projects meant that operating profit grew at a faster rate
than sales, rising 21.6 percent to EUR 62 m (2010: EUR 51 m). The operating
margin was 10.5 percent (2010: EUR 9.9 percent), again significantly exceeding
the target figure of 8 percent.
Order intake in the three months ended 31 March 2011 was EUR 444 m (2010: EUR
502 m). In the engineering project business, a comparison between the situation
at the end of the current quarter and the prior-year quarter is only of limited
use. Projects do not arise at regular intervals and individual major projects
can have a significant impact on this key figure in a particular quarter. As in
previous quarters, order intake in the first quarter of 2011 was characterised
by a number of small and medium-sized new orders.
Linde's order backlog remains high. At 31 March 2011, it stood at EUR 3.714 bn
(31 December 2010: EUR 3.965 bn).
Engineering Division - Outlook
The high order backlog provides a good basis for a solid business performance in
the Engineering Division over the next two years. Linde expects to achieve the
same level of sales in its engineering business in the 2011 financial year as in
2010. The target figure for the operating margin in the current financial year
is at least 8 percent.
Linde continues to be well-positioned in the international market for olefin
plants, natural gas plants, air separation plants as well as hydrogen and
synthesis gas plants and will derive sustainable benefit in particular from
investment in two structural growth areas: energy and the environment.
To coincide with the publication of the quarterly financial statements, a
teleconference for analysts will take place today at 2pm (German time) in
English with Georg Denoke, CFO of Linde AG. Journalists will have the
opportunity to listen to the conference live by dialling +49.69.589.99-0509.
Please give the following reference number 894624 and tell the operator your
name and the name of your company. Following the teleconference, you will be
able to hear a recording of the event by calling +49.30.726.16-7224. Please give
the following reference number: 894624.
The Linde Group is a world-leading gases and engineering company with around
48,700 employees in more than 100 countries worldwide. In the 2010 financial
year, it achieved sales of EUR 12.868 bn. The strategy of The Linde Group is
geared towards sustainable earnings-based growth and focuses on the expansion of
its international business with forward-looking products and services. Linde
acts responsibly towards its shareholders, business partners, employees, society
and the environment - in every one of its business areas, regions and locations
across the globe. Linde is committed to technologies and products that unite the
goals of customer value and sustainable development.
For more information, see The Linde Group online at http://www.linde.com
Further information:
Press Investor Relations
Uwe Wolfinger Dr Dominik Heger
Telephone: +49.89.35757-1320 Telephone: +49.89.35757-1334
Thomas Eisenlohr
Telephone: +49.89.35757-1330
*Operating profit: EBITDA including share of net income from associates and
joint ventures.
--- End of Message ---
Linde AG
Klosterhofstrasse 1 Munich Germany
WKN: 648300;ISIN: DE0006483001;Index:Prime All Share,HDAX,DAX,CDAX;
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Press Release as PDF:
http://hugin.info/125064/R/1512040/447476.pdf
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Unternehmensinformation / Kurzprofil:
Datum: 04.05.2011 - 07:31 Uhr
Sprache: Deutsch
News-ID 54203
Anzahl Zeichen: 14149
contact information:
Town:
Munich
Kategorie:
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