FRANKFURT (Dow Jones ) – The gases and engineering group Linde has its recovery in the second quarter continued clearer than expected. In the last year reached the Munich DAX- strong group sales and disproportionate Ergebniszuwäche , exceeding analysts ‘expectations clear . (Photo : Linde)
Even compared to the first quarter of 2010 were the numbers look better.
In light of the good results of the Linde AG on Monday reiterated their annual forecasts . For the full year 2010 sales and operating earnings rise , therefore, continue . Linde is on track to improve the group’s operating earnings disproportionately , while surpassing the record year 2008, the company explained . 2008 operating earnings of EUR 2.555 billion had been reached .
Profit for the quarter of a lime tree could continue rising demand and positive effects from the cost reduction program " HPO ". Operating profit increased by 33.4 % to 755 million to EUR surveyed by Dow Jones Newswires analysts had expected , on average , with 672 million EUR. After taxes and minority interest were improved profits by 85.7% to EUR 247 million estimated 211 million EUR. The operating margin for the quarter climbed to 23.5 % from 20.4 % last year. Sales improved by 15.4 % to EUR 3.21 billion , were forecast 3.018 billion EUR.
Clearly positive , the largest division , the gases division has developed . According to Linde’s data, the market recovery in the international gas industry in the wake of the improved macroeconomic situation in the second quarter has been further strengthened. Of these positive conditions Linde has benefited . The turnover of the gases division climbed to 2.591 billion from 2.193 billion EUR. As Linde said , the overall economic conditions have improved in the second quarter in all regions.
The operating result for this division grew disproportionately to EUR 712 million , in the same period last year EUR 592 million had been made . The operating margin of the gases division rose to 27.5 % from 27%. The strengthening of profitability resulted primarily from the positive effects of efficiency improvement and cost reduction program " HPO , "it said .
The program will reduce its gross Linde in 2012 to 650 million to 800 million EUR. 2009 , more than EUR 300 million had been saved with the program. 2010, the savings turn out tends to be lower than last year, Linde had declared.
In the full year will increase in the Linde Gases Division sales and earnings. It continues to expect the company before , operating profit from the record level in 2008 of EUR 2.417 billion to surpass .
Encouraging the second quarter went well for Linde in the smaller division, the Engineering Division. multiplied in the division , the signs of a recovery in investment , it said. Here , sales rose slightly in the quarter to 578 million from EUR 564 million last year. The operating profit increased significantly to 72 (45 ) million EUR. The operating margin has reached 12.5% ( 8% ) and thus the target for this sector of 8% has been substantially exceeded , said the company. This significant margin increase was due to the successful completion of individual projects.
In the full year will exceed the Linde Engineering Division operating margin of the target of 8 % remains . In the second quarter, high margin of 12.5 % but will not let themselves be extrapolated to the full year , Linde said a spokesman. The division’s revenue will equal or exceed the previous year of EUR 2.311 billion .
Analysts said more than -expected numbers at Linde. The gases division has accelerated its organic growth, analysts declared the LBBW. The Engineering Division has shown strong gains. Particularly positive was the margin improvement in the gas business to 27.5 % from 27.0 % to evaluate said Lutz Grüter , an analyst at Kepler Capital Markets, the Zweitquartalszahlen . In addition, the company had both the sales significantly exceeded the results page and on market expectations.
Investors also paid tribute to the good numbers. The Linde shares were up 10.27 clock with 3.7 % in the plus and was quoted at 93.31 EUR . The paper was one of the biggest winners in the DAX.
By Heide Oberhauser -Aslan – , Dow Jones Newswires
+49 (0)69 29725 113, heide.oberhauser @ dowjones.com
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