DGAP-News

Linde AG: Positive exchange rate effects have a beneficial impact on Linde's revenue and earnings in the first half of 2015

DGAP-News: Linde AG / Key word(s): Half Year Results
Linde AG: Positive exchange rate effects have a beneficial impact on
Linde's revenue and earnings in the first half of 2015

29.07.2015 / 07:30

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Press release

Positive exchange rate effects have a beneficial impact on Linde's revenue
and earnings in the first half of 2015

- Business performance gains some momentum in the second quarter

- Very positive trend in operating cash flow continues

- Group revenue forecast adjusted as a result of persistent weak demand
in the plant construction sector

Munich, 29 July 2015 - The technology company The Linde Group achieved a
10.0 percent increase in revenue on the basis of reported figures in the
first six months of 2015 to EUR 9.036 bn, compared with revenue of EUR
8.212 bn in the first six months of 2014. After adjusting for exchange rate
effects, revenue was similar to the level achieved in the first half of
2014. Operating profit improved by 11.0 percent to EUR 2.104 bn (2014: EUR
1.896 bn). After adjusting for exchange rate effects, operating profit rose
by 0.4 percent. The Group operating margin increased from 23.1 percent in
the first half of 2014 to 23.3 percent in the first half of 2015. The
exceptionally positive trend in operating cash flow continued.

After a modest start to the financial year in the first three months of
2015, Linde once again achieved increases in both Group revenue and Group
operating profit in the second quarter after adjusting for exchange rate
effects. For the three months ended 30 June 2015, Group revenue rose by 0.7
percent after adjusting for exchange rate effects, while Group operating
profit rose by 1.8 percent. In both cases, the comparison is with the
figures for the second quarter of 2014.

"In the course of the second quarter, Linde's business performance gained
some momentum. The Gases Division, which is by far our largest and most
important line of business, has continued to grow," said Dr Wolfgang
Büchele, Chief Executive Officer of Linde AG. "We have revised up our
forecast for the Gases Division mainly as a result of exchange rate
effects. In plant construction, on the other hand, we are feeling the
impact of a worldwide reluctance to invest due to the low price of oil," he
continued. "Given that weak demand is expected to persist in the second
half of 2015 and that sustained growth momentum is not anticipated, the
Executive Board has now revised down the revenue forecast for the
Engineering Division to between EUR 2.5 bn and EUR 2.7 bn," explained
Büchele as he presented the figures.

In the first six months of 2015, earnings per share before restructuring