DGAP-News: Linde plc / Key word(s): Quarter Results
Linde plc: Linde Reports Second-Quarter 2021 Results (Earnings Release Tables Attached) (news with additional features)
2021-07-30 / 10:59
The issuer is solely responsible for the content of this announcement.
Linde Reports Second-Quarter 2021 Results
. Sales USD7.6 billion, up 19% versus prior-year quarter
. Operating profit USD1.1 billion; adjusted operating profit USD1.8 billion, up 39%
. Operating profit margin 15.1%; adjusted operating profit margin 24.2%, up 350 basis points
. EPS USD1.60, up 84%; adjusted EPS USD2.70, up 42%
. Increased full-year 2021 adjusted EPS guidance to USD10.10 - USD10.30, representing 23% to 25% growth year-over-year
Guildford, UK, July 30, 2021 - Linde plc (NYSE: LIN; FWB: LIN) today reported second-quarter 2021 income from
continuing operations of USD840 million and diluted earnings per share of USD1.60, an increase of 84% versus prior year.
Excluding Linde AG purchase accounting impacts and other charges, adjusted income from continuing operations was USD1,415
million, up 41% versus prior year and 8% sequentially. Adjusted earnings per share was USD2.70, 42% above prior year and
8% higher sequentially.
Linde's sales for the second quarter were USD7,584 million, 19% above prior year and up 5% sequentially. Compared to
prior year, underlying sales increased 18%, including 3% price attainment and 15% higher volumes. Volume growth was
broad-based across all geographic segments and end markets. Sequentially, underlying sales increased 5% driven by
higher volume and price.
Second-quarter operating profit was USD1,142 million. Adjusted operating profit of USD1,837 million was up 39% versus prior
year led by higher price, strong volumes and continued productivity initiatives across all segments. Adjusted operating
margin of 24.2% expanded 350 basis points versus prior year and 90 basis points sequentially.
Second-quarter operating cash flow of USD1,827 million increased 4% versus prior year. After capital expenditures of USD744
million, free cash flow was USD1,083 million, up 10% versus prior year. During the quarter, the company returned USD1,748
million to shareholders through dividends and stock repurchases, net of issuance.
In addition, the company ended the second quarter with a total backlog of approximately USD7.5 billion which includes
both sale of gas and sale of plant projects, all contractually secured with high-quality customers.
Commenting on the financial results and business outlook, Chief Executive Officer Steve Angel said, "Linde employees
delivered another quarter of record breaking financial results with operating profit margins expanding 350 basis
points, ROC improving to 15.7% and EPS growing 42%, reaching an all-time high of USD2.70. Our team continues to execute
well against our core strategy, producing industry leading performance."
Angel continued, "Looking ahead, I'm confident the company will deliver another outstanding year."
For third quarter 2021, Linde expects adjusted diluted earnings per share in the range of USD2.60 to USD2.70, up 34% to 39%
versus the same quarter in 2019 and 21% to 26% versus prior-year quarter. This guidance assumes 3% currency tailwind
versus prior year and 1% headwind sequentially.
For full year 2021, the company has updated its adjusted diluted earnings per share guidance to be in the range of
USD10.10 to USD10.30, up 38% to 40% versus 2019 and 23% to 25% versus prior year. This guidance assumes 3% currency
tailwind versus 2020. Full-year capital expenditures are expected to be in the range of USD3.0 billion to USD3.4 billion to
support maintenance and growth requirements including the contractual project backlog.
Second-Quarter 2021 Results by Segment
Americas sales of USD3,020 million were 25% above prior year. Underlying sales increased 21% driven by 3% higher pricing
and 18% higher volume, led by stronger demand across all end markets and project start-ups. Sequentially, price
increased 1% and volumes grew 5%, led primarily by higher demand in the cyclical end markets. Operating profit of USD871
million was 28.8% of sales, up 310 basis points versus prior year.
APAC (Asia Pacific) sales of USD1,544 million were 19% above prior year. Underlying sales grew 21% driven by 2% price
attainment and 19% volume growth, led by higher demand across all end markets, plus project start-ups. Sequentially,
price increased 1% and volume grew 7%, led by electronics and cyclical end markets. Divestitures were driven by an
accounting deconsolidation of a joint venture which reduced sales 12% versus prior year, but had no impact on earnings
per share. Operating profit of USD389 million was 25.2% of sales, up 250 basis points versus prior year.
EMEA (Europe, Middle East & Africa) sales of USD1,875 million were up 29% versus prior year. Underlying sales grew 16%
from 4% higher pricing and 12% higher volumes across all end markets. Sequentially, underlying sales were up 3% from 1%
pricing and 2% volumes. Operating profit of USD487 million was 26.0% of sales, up 510 basis points versus prior year.
Linde Engineering sales were USD646 million, 20% below prior year largely due to the timing of plant completion and
operating profit was USD108 million or 16.7% of sales. Order intake for the quarter was USD355 million and third-party sale
of plant backlog was USD4.1 billion.
A teleconference on Linde's second-quarter 2021 results is being held today at 9:00 am EDT.
Live conference call US Toll-Free Dial-In Number: 1 855 758 5442
Germany Toll-Free Dial-In Number: 0800 181 5287
UK Toll-Free Dial-In Number: 0800 028 8438
Access code: 2925099
Live webcast (listen-only) https://investors.linde.com/events-presentations
Short URL: https://t1p.de/i2ho
Materials to be used in the teleconference are also available on the website.
About Linde Linde is a leading global industrial gases and engineering company with 2020 sales of USD27 billion (EUR24 billion). We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain and protect our planet. The company serves a variety of end markets including chemicals & refining, food & beverage, electronics, healthcare, manufacturing and primary metals. Linde's industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.
For more information about the company and its products and services, please visit www.linde.com
Adjusted amounts, free cash flow and return on capital are non-GAAP measures. See the attachments (Earnings release tables: https://eqs-cockpit.com/cgi-bin/fncls.ssp?u=877a140efbc17aa840d45e8102ccced4) for a summary of non-GAAP reconciliations and calculations for adjusted amounts.
Attachments: Summary Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information and Appendix: Non-GAAP Measures and Reconciliations.
*Note: We are providing adjusted earnings per share ("EPS") guidance for 2021. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort. Forward-looking Statements This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. They 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 performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; 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, pandemics such as COVID-19 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; 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
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July 30, 2021 04:59 ET (08:59 GMT)