LINDE PLC
DGAP-News: Linde plc / Key word(s): Quarter Results
Linde plc: Linde Reports First-Quarter 2021 Results (Earnings Release Tables Attached) (news with additional features)
2021-05-06 / 11:59
The issuer is solely responsible for the content of this announcement.
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Linde Reports First-Quarter 2021 Results
Financial Highlights
. Sales USD7.2 billion, up 7% versus prior-year quarter
. Operating profit USD1.2 billion; adjusted operating profit USD1.7 billion, up 25%
. Operating profit margin 16.7%; adjusted operating profit margin 23.3%, up 320 basis points
. EPS USD1.86; adjusted EPS USD2.49, up 32%
. Strong operating cash flow USD2.1 billion, up 57%
. Increased full-year 2021 adjusted EPS guidance to USD9.60 - USD9.80, represents 17% to 19% growth year-over-year
Guildford, UK, May 6, 2021 - Linde plc (NYSE: LIN; FWB: LIN) today reported first-quarter 2021 income from continuing
operations of USD979 million and diluted earnings per share of USD1.86, an increase of 74% versus prior year. Excluding
Linde AG purchase accounting impacts and other charges, adjusted income from continuing operations was USD1,312 million,
up 30% versus prior year and 8% sequentially. Adjusted earnings per share was USD2.49, 32% above prior year and 8% higher
sequentially.
Linde's sales for the first quarter were USD7,243 million, 7% above prior year and flat sequentially. Compared to prior
year, underlying sales increased 5%, including 2% price attainment and 3% higher volumes, led by healthcare,
electronics and a recovery in the cyclical end markets of manufacturing, metals, chemicals and refining. Sequentially,
underlying sales increased 2% driven by higher volume and price.
First-quarter operating profit was USD1,213 million. Adjusted operating profit of USD1,688 million was up 25% versus prior
year led by higher price and continued productivity initiatives across all segments. Adjusted operating margin of 23.3%
expanded 320 basis points versus prior year and 110 basis points sequentially.
First-quarter operating cash flow of USD2,109 million increased 57% versus prior year. After capital expenditures of USD762
million, free cash flow was USD1,347 million, up 148% versus prior year. During the quarter, the company returned USD1,404
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
delivered another strong quarter of financial results with operating profit margins expanding over 320 basis points,
ROC improving to 14.5% and operating cash flow increasing 57%. In addition, EPS grew 32%, reaching a new record high of
USD2.49. The resiliency of our business model coupled with the ability to leverage any economic recovery has allowed
Linde to continue delivering stellar results."
Angel continued, "Looking ahead, I have confidence the company will continue to create significant shareholder value
for years to come."
For the second quarter of 2021, Linde expects adjusted diluted earnings per share in the range of USD2.50 to USD2.55, up
37% to 39% versus the same quarter in 2019 and 32% to 34% versus prior-year quarter. This guidance assumes a
year-over-year 4% currency tailwind and sequentially a negative currency impact of 1%.
For the full year 2021, the company expects adjusted diluted earnings per share to be in the range of USD9.60 to USD9.80,
up 31% to 34% versus 2019 and 17% to 19% versus prior year. This guidance assumes a 2% 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 USD3.5 billion contractual sale of gas project backlog.
First-Quarter 2021 Results by Segment
Americas sales of USD2,840 million were 6% above prior year. Underlying sales increased 7% driven by 3% higher pricing
and 4% higher volume, led by higher demand across all end markets. Sequentially, price increased 1% and volumes grew
3%, led by higher demand in healthcare, electronics and cyclical end markets. Operating profit of USD795 million was
28.0% of sales, up 330 basis points versus prior year.
APAC (Asia Pacific) sales of USD1,436 million were 7% above prior year. Underlying sales grew 11% driven by 1% price
attainment and 10% volume growth, primarily in the electronics and cyclical end markets plus project start-ups.
Sequentially, volume was flat as contribution from project start-ups was offset by weaker base volumes, mainly due to
seasonality. Divestitures were driven by an accounting deconsolidation of a joint venture which reduced sales 11%
versus prior year and 12% sequentially, but had no impact on earnings per share. Operating profit of USD351 million was
24.4% of sales, up 340 basis points versus prior year.
EMEA (Europe, Middle East & Africa) sales of USD1,799 million were up 10% versus prior year. Underlying sales grew 4%,
primarily led by 3% higher pricing and increased demand from the healthcare end market. Sequentially, underlying sales
were flat, with 1% higher pricing offset by slightly lower volumes. Operating profit of USD451 million was 25.1% of
sales, up 340 basis points versus prior year.
Linde Engineering sales were USD674 million, 11% above prior year, and operating profit was USD109 million or 16.2% of
sales. Order intake for the quarter was USD461 million, up 30% sequentially, and third-party sale of equipment backlog
was USD4.3 billion.
Earnings Call
A teleconference on Linde's first-quarter 2021 results is being held today at 10:00 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: 8561159
Live webcast (listen-only) https://investors.linde.com/events-presentations
Short URL: https://t1p.de/i2hoMaterials 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=07bff9b77ee5f342abf661c8820a93a9) 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
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