Linde Q3 2024 sales up 2% to US$ 8.4 billion
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Linde Q3 2024 sales up 2% to US$ 8.4 billion

Operating profit $2.1 billion, adjusted operating profit $2.5 billion, up 7%

  • By ICN Bureau | November 01, 2024

Linde reported third-quarter 2024 net income of $1,550 million and diluted earnings per share of $3.22.  Excluding Linde AG purchase accounting impacts, cost reduction programs and other charges, adjusted net income was $1,896 million, up 6% versus prior year.  Adjusted earnings per share was $3.94, 9% above prior year.

Linde’s sales for the third quarter were $8,356 million, up 2% versus prior year.  Compared to prior year, underlying sales increased 2% from price attainment as volumes were flat.

Third-quarter operating profit was $2,086 million.  Adjusted operating profit of $2,477 million was up 7% versus prior year led by higher price and continued productivity initiatives across all segments.  Adjusted operating profit margin of 29.6% was 130 basis points above prior year.

Third-quarter operating cash flow of $2,731 million increased 8% versus prior year driven primarily by better working capital.  After capital expenditures of $1,066 million, free cash flow was $1,665 million.  During the quarter, the company returned $1,322 million to shareholders through dividends and stock repurchases, net of issuances.

Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, “As anticipated, weak economic trends persisted through the third quarter, most notably in the industrial end markets.  However, Linde employees once again delivered high-quality results by growing EPS 9%, increasing ROC to 25.8% and expanding operating margins by 130 basis points to 29.6%.  In addition to managing near term performance, the company signed its largest ever sale-of-gas project which expands the project backlog to $10 billion and secures future growth in the traditional industrial gas model – all while meeting our disciplined investment criteria.”

Lamba continued, “Currently, we do not anticipate any near-term improvement in the economic environment.  However, we have taken proactive actions to mitigate economic headwinds and remain well positioned to continue creating shareholder value.”

For the fourth quarter of 2024, Linde expects adjusted diluted earnings per share in the range of $3.86 to $3.96, up 8% to 10% versus prior-year quarter and estimates no impact from currency.

For the full year 2024, the company expects adjusted diluted earnings per share to be in the range of $15.40 to $15.50, up 8% to 9% versus prior year or 9% to 10% when excluding 1% of estimated currency headwind.  Full-year capital expenditures are expected to be in the range of $4.0 billion to $4.5 billion to support growth and maintenance requirements including the $7 billion contractual sale of gas project backlog. 

Linde Engineering sales were $611 million, increased 31% versus prior year, and operating profit was $108 million or 17.7% of sales.  Order intake for the quarter was $491 million and third-party sale of equipment backlog was $3.1 billion.

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