Linde plc: Linde Reports Third-Quarter 2020 Results (Earnings Release Tables attached)
DGAP-News: Linde plc
/ Key word(s): Quarter Results
Linde Reports Third-Quarter 2020 Results
Guildford, UK, November 5, 2020 - Linde plc (NYSE: LIN; FWB: LIN) today reported third-quarter 2020 income from continuing operations of $699 million and diluted earnings per share of $1.32. Excluding Linde AG purchase accounting impacts and other charges, adjusted income from continuing operations was $1,140 million, up 8% versus prior year and 13% sequentially. Adjusted earnings per share was $2.15, 11% above prior year and 13% higher sequentially. Linde's sales for the third quarter were $6,855 million, 2% below prior year and up 7% sequentially. Compared to prior year, excluding the impacts of foreign currency, cost pass-through and divestitures, underlying sales decreased 1%, as 2% price attainment was more than offset by 3% lower volumes. Sequentially, industrial gas volumes increased 6% but were partially offset by a 3% decrease in Engineering sales. Higher pricing of 1% was driven by increases across all geographic segments. Third-quarter operating cash flow of $1,884 million increased 1% versus prior year and 7% sequentially. After capital expenditures of $787 million, free cash flow was $1,097 million, up 20% versus prior year. In the quarter, the company returned $692 million to shareholders through dividends and stock repurchases, net of issuance. Commenting on the financial results and business outlook, Chief Executive Officer Steve Angel said, "Linde employees once again delivered a strong quarter with operating profit margins expanding 230 basis points and EPS growing 11%, reaching a record of $2.15. This high level of profitability combined with disciplined capital management resulted in further expansion of our ROC to approximately 13%." Angel continued, "Looking ahead, there is significant uncertainty in the environment, but regardless of the underlying economy, I have confidence in our business model and high-performance culture to continue growing earnings and cash flow for years to come." For the full year, the company expects adjusted diluted earnings per share to be in the range of $8.05 to $8.10, up 10% versus prior year, or 12% when excluding currency headwinds. Full-year capital expenditures are expected to range between $3.0 billion to $3.2 billion to support operating and growth requirements including the $3.7 billion contractual sale of gas project backlog. Third-Quarter 2020 Results by Segment APAC (Asia Pacific) sales of $1,484 million were 2% above prior year and up 15% sequentially. Compared to prior year, underlying sales were flat as 1% price attainment was offset by 1% volume decline. Sequentially, price increased 1% and volumes grew 10% led by higher demand, primarily in China and India. Operating profit of $337 million was 22.7% of sales, up 160 basis points versus prior year and steady sequentially. EMEA (Europe, Middle East & Africa) sales of $1,622 million were down 1% versus prior year, but grew 12% sequentially. Compared with third quarter 2019, underlying sales were down 1% as 3% higher pricing was more than offset by a 4% decline in volume. Sequentially, underlying sales grew 7% due to 2% higher pricing and 5% volume growth primarily in the manufacturing, food and beverage end markets. Operating profit of $370 million was 22.8% of sales, up 230 basis points versus prior year and 190 basis points sequentially.
Materials to be used in the teleconference are also available on the website. 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=3d41b35a66dda625b59f07cc90516911) 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 2020. 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 Additional features: File: Q3 2020 Earnings Release Table
05.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | Linde plc |
The Priestley Centre, 10 Priestley Road | |
GU2 7XY Guildford | |
United Kingdom | |
Phone: | +1-203-837-2210 |
E-mail: | Investor_Relations@Linde.com |
Internet: | www.linde.com |
ISIN: | IE00BZ12WP82 |
WKN: | A2DSYC |
Indices: | DAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Moscow, NYSE, Luxembourg Stock Exchange (Euro MTF) |
EQS News ID: | 1145746 |
End of News | DGAP News Service |
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1145746 05.11.2020