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Linde AG: January to June 2014: Linde proves its stability despite unfavourable exchange rate effects

DGAP-News: Linde AG / Key word(s): Quarter Results
Linde AG: January to June 2014: Linde proves its stability despite
unfavourable exchange rate effects

29.07.2014 / 07:30

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Press Release

January to June 2014:
Linde proves its stability despite unfavourable exchange rate effects

- Group revenue: EUR 8.212 bn (2013: EUR 8.207 bn);
up 5.6 percent after adjusting for exchange rate effects.

- Group operating profit : EUR 1.896 bn (2013: EUR 1.966 bn);
up 1.7 percent after adjusting for exchange rate effects.

- 2014 Group outlook confirmed:
After adjusting for exchange rate effects: solid revenue growth,
moderate improvement in operating profit.

Munich, 29 July 2014 - In the first half of 2014, the technology company
The Linde Group generated virtually the same amount of revenue as in the
first half of 2013. Group operating profit was not quite as high as in the
prior-year period. "We have proved our stability, although reported growth
was again hampered by unfavourable exchange rate effects," said Dr Wolfgang
Büchele, Chief Executive Officer of Linde AG.

Linde believes that it is still on track for the full year 2014 and
confirms its previous outlook: "In the current financial year, we expect to
achieve solid growth in revenue and a moderate improvement in Group
operating profit - after adjusting for exchange rate effects," continued
CEO Büchele.

In the first half of 2014, Linde generated Group revenue of EUR 8.212 bn
(2013: EUR 8.207 bn). As in previous quarters, fluctuations in exchange
rates had a significant adverse impact on growth trends. After adjusting
for exchange rate effects (which equate to revenue of EUR 428 m), the
increase in revenue in the first half of 2014 was 5.6 percent.

Group operating profit in Linde for the six months to 30 June 2014 was EUR
1.896 bn, not quite as high as the figure for the first six months of 2013
of EUR 1.966 bn. Adverse currency fluctuations also need to be considered
here. The effect of these distortions was to reduce earnings by EUR 101 m.
Without the distortions, the Group would have achieved a 1.7 percent
increase in Group operating profit. The Group operating margin for the
first half of 2014 was 23.1 percent (2013: 24.0 percent). It should be
noted here that, as expected, the Engineering Division contributed
significantly more to Group revenue in the reporting period than was the
case in the first half of 2013. Linde's engineering business has a lower
margin than its gases operations.

The Group generated earnings before tax (EBT) in the first half of 2014 of