German industrial gas and engineering group Linde AG posted 2001 sales slightly below its own forecast but reiterated its profit view despite the sagging global economy.
The outlook was good enough t…
German industrial gas and engineering group Linde AG posted 2001 sales slightly below its own forecast but reiterated its profit view despite the sagging global economy. The outlook was good enough to send the company“s stock up more than 1% after falling slightly in early trade. Linde said in a statement 2001 sales rose 7.4% to EUR 9.076 billion and repeated that it expected earnings before interest, tax and amortization (EBITA) to rise around 8%. The company was expected to release profit figures at the end of February 2002. Trading at Linde“s key industrial gas division – bolstered by its SEK 30.9 billion acquisition of Sweden“s AGA in 2000 – slowed in the fourth quarter amid the gloomy economic climate across the Atlantic. “The Linde gas division succeeded in extending its position as the fourth largest gas company in the world and improved sales by 2.5% to EUR 3.877 billion, even though demand strongly declined in North America and some of the southern American countries faced severe economic problems,” Linde said. Gas sales had been up 4.4% after nine months. In industrial gas, Linde ranks behind France“s Air Liquide SA, Britain“s BOC Group Plc and US Praxair, Inc. The last week of January Air Liquide reported a 9.6% sales fall at its main business of gases and services in the fourth quarter, citing the slowing economy, but said activity began to improve at the end of the fourth quarter. Praxair said last week it expects economic activity and manufacturing conditions in the near term to remain at the low levels of the fourth quarter. Linde had said in November2001 that it expected 8% growth in sales as well as EBITA, with sales and earnings seen rising in 2002. After nine months, EBITA was up 3.6% at EUR 515 million. Sales in 2001 at Linde“s second largest division, materials handling, rose 7% to EUR 3.158 billion after posting 8.8% growth after nine months. But that division, which makes forklift trucks, managed to increase market share to 20% from 18.5%, Linde said. Linde and the combined operations of Toyota Motor Corp and recently acquired Swedish unit BT Industries AB are the world“s two biggest producers of forklift trucks. Group incoming orders ended the year up 0.7% at EUR 9.145 billion.