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Linde reports second-quarter 2021 results

By Hemanth on Jul 31, 2021 | 02:31 AM IST


Linde plc [LIN] today reported second-quarter 2021 income from continuing operations of $840 million and diluted earnings per share of $1.60, an increase of 84% versus prior year. Excluding Linde AG purchase accounting impacts and other charges, adjusted income from continuing operations was $1,415 million, up 41% versus prior year and 8% sequentially. Adjusted earnings per share was $2.70, 42% above prior year and 8% higher sequentially.

Linde’s sales for the second quarter were $7,584 million, 19% above prior year and up 5% sequentially. Compared to prior year, underlying sales increased 18%, including 3% price attainment and 15% higher volumes. Volume growth was broad-based across all geographic segments and end markets. Sequentially, underlying sales increased 5% driven by higher volume and price.

Second-quarter operating profit was $1,142 million. Adjusted operating profit of $1,837 million was up 39% versus prior year led by higher price, strong volumes and continued productivity initiatives across all segments. Adjusted operating margin of 24.2% expanded 350 basis points versus prior year and 90 basis points sequentially.

Second-quarter operating cash flow of $1,827 million increased 4% versus prior year. After capital expenditures of $744 million, free cash flow was $1,083 million, up 10% versus prior year. During the quarter, the company returned $1,748 million to shareholders through dividends and stock repurchases, net of issuance.

In addition, the company ended the second quarter with a total backlog of approximately $7.5 billion which includes both sale of gas and sale of plant projects, all contractually secured with high-quality customers.

Commenting on the financial results and business outlook, Chief Executive Officer Steve Angel said, “Linde employees delivered another quarter of record breaking financial results with operating profit margins expanding 350 basis points, ROC improving to 15.7% and EPS growing 42%, reaching an all-time high of $2.70. Our team continues to execute well against our core strategy, producing industry leading performance.”


Financial Highlights:

➢ Sales $7.6 billion, up 19% versus prior-year quarter

➢ Operating profit $1.1 billion; adjusted operating profit $1.8 billion, up 39%

➢ Operating profit margin 15.1%; adjusted operating profit margin 24.2%, up 350 basis points

➢ EPS $1.60, up 84%; adjusted EPS $2.70, up 42%

➢ Increased full-year 2021 adjusted EPS guidance to $10.10 - $10.30, representing 23% to 25% growth year-over-year

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