gasworld Business Intelligence provides you with the latest analysis of Linde’s Q1 2016 earnings reports.
Headlines
- Total corporate sales reported at €4.26bn in Q1 2016, down -3% or down 0.5% excluding currency. This was the weakest reported growth for The Linde Group since late 2013.
- Reported gases growth also turned slightly negative in Q1, however the rate remained positive in the range of 2-3%, excluding currency, as seen in recent quarters.
- Engineering sales down by -15% YoY in Q1, and at lowest level since early 2013, but order intake solid, although backlog down since end 2015.
- Gases account for around 80% of Linde corporate sales, with engineering nearly 20%, and other businesses (mainly Gist distribution) less than 2%.
- 2016 growth expectations unchanged – corporate range -3% to 4%, excluding currency, gases 0% to 5%.
- Reported corporate operating income down -2% to €530m YoY after adjusting for prior year restructuring costs.
- Underlying gases operating income growth remained marginally positive at 0.5%.
- Restructuring charges fell to zero after significant charges taken as non-recurring items, over the first three quarters of 2015 – total charge in 2015, €192m.
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