Linde achieves record levels and is set for further growth

Supervisory Board appoints new member of the Executive Board: Sanjiv Lamba assumes responsibility for the growth market of Asia

15-Mar-2011 - Germany

The Supervisory Board of Linde AG approved the financial statements of the holding company and the Group financial statements for the 2010 financial year. At this meeting, it also appointed Sanjiv Lamba (46) as a new member of the Linde AG Executive Board with immediate effect. Mr Lamba, who is based in Singapore, will be responsible in future for the gases business of the Group in Greater China, South and East Asia and in the South Pacific region. He will also assume responsibility for the Asian joint ventures and for the electronic gases product segment. Mr Lamba’s latest role in the Group was managing Linde’s business in the South and East Asia region, which forms part of the Asia & Eastern Europe operating segment.

"We are delighted that the Supervisory Board has appointed Sanjiv Lamba to the Executive Board. This appointment demonstrates our awareness of the growing importance of the emerging economies of Asia to our Group," said Professor Dr Wolfgang Reitzle, Chief Executive Officer of Linde AG. "In the 2010 financial year, the Group was already reaping the benefit of its very good position in these markets." Linde achieved double-digit growth in both sales and operating profit, surpassing its previous best figures posted in the 2008 financial year. "The global economy has grown faster and more vigorously than might have been expected," the CEO continued. "But our good performance is not just due to the recovery of the global economy. It is also the result of us being in a position to seize growth opportunities as they arise. Our gases and engineering businesses have a global presence. What’s more, we have continued to achieve efficiency gains."

Linde is looking to the future with confidence. “We have set ourselves new medium-term targets,” explained CEO Reitzle. “We will be aiming to achieve Group operating profit of at least EUR 4 bn in the 2014 financial year. Our minimum target for return on capital employed for the same year is 14 percent.” This four-year forecast is based on current economic estimates and prevailing exchange rates. “In the 2011 and 2012 financial years, we assume Group sales and Group operating profit will show continuous improvement.”

In the 2010 financial year, Group sales rose 14.8 percent to EUR 12.868 bn (2009: EUR 11.211 bn). By way of comparison, Linde achieved sales in the 2008 financial year of EUR 12.663 bn. The Group continued to increase its profitability, with Group operating profit growing at a faster rate than sales, up 22.6 percent to EUR 2.925 bn (2009: EUR 2.385 bn). Group operating profit in 2008 was EUR 2.555 bn. The Group operating margin in the 2010 financial year increased by 140 basis points to 22.7 percent (2009: 21.3 percent). Linde was also able to benefit significantly from the positive impact of its High Performance Organisation (HPO) programme which is designed to achieve sustainable process optimisation and efficiency gains.

Linde saw a 66.9 percent increase in earnings before taxes on income (EBT) to EUR 1.399 bn (2009: EUR 838 m). Earnings after tax rose by 62.9 percent to EUR 1.064 bn (2009: EUR 653 m). The amount attributable to Linde AG shareholders was EUR 1.005 bn (2009: EUR 591 m), giving earnings per share of EUR 5.94 (2009: EUR 3.51). On an adjusted basis, i.e. after adjusting for the effects of the purchase price allocation identified in the course of the BOC acquisition, earnings per share stood at EUR 6.89 (2009: EUR 4.58).

Operating cash flow continued the positive trends seen in the previous quarters. It increased significantly from the prior year, by 13.1 percent to EUR 2.422 bn (2009: EUR 2.142 bn). ROCE (return on capital employed) rose to 12.5 percent (2009: 10.4 percent). Linde reduced its net financial debt by EUR 622 m to EUR 5.497 bn (2009: EUR 6.119 bn).

The Executive Board and Supervisory Board of Linde AG will propose a resolution at the Annual General Meeting to be held on 12 May 2011 that a dividend of EUR 2.20 per share be paid. This is an increase of 22.2 percent compared with the dividend declared in 2010 of EUR 1.80.

https://www.chemeurope.com/en/news/131312/linde-achieves-record-levels-and-is-set-for-further-growth.html