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Linde AG: Positive exchange rate effects have a beneficial impact on Linde's revenue and earnings in the first half of 2015 - Seite 3

than the figure achieved in the first half of 2014 of EUR 2.978 bn. On a
comparable basis, revenue fell by 1.5 percent. The expiry of a hydrogen
supply contract in Italy had a substantial adverse impact on revenue. At
the end of 2014, the plant was transferred to the customer and since that
date the plant has ceased to make a contribution to revenue. Operating
profit was EUR 915 m, which was 2.9 percent higher than the figure for the
first half of 2014 of EUR 889 m. The operating margin increased to 30.4
percent (2014: 29.9 percent).

Forecast: Linde has revised up its revenue forecast in the Gases Division
from between EUR 14.9 bn and EUR 15.4 bn to between EUR 15.1 bn and EUR
15.5 bn mainly as a result of current trends in exchange rates. Linde is
now seeking to achieve operating profit in the Gases Division of between
EUR 4.1 bn and EUR 4.3 bn, compared with its previous forecast for
operating profit of between EUR 4.05 bn and EUR 4.25 bn. In each case,
achievement of the targets is dependent on ongoing trends in industrial
production and on exchange rates.

Order backlog in the Engineering Division remains high
The order backlog in the Engineering Division at 30 June 2015 remained high
at EUR 4.191 bn (31 December 2014: EUR 4.672 bn).

As a result of prevailing mood of restraint worldwide towards investment in
plant construction, order intake in the six months to 30 June 2015 was EUR
724 m (2014: EUR 1.058 bn). The order intake in the first half of 2015 was
evenly spread across the Asia/Pacific, Europe and North America regions,
with a third of orders in each region. Around half of new orders are
related to natural gas, hydrogen and synthesis gas plants.

Revenue in the Engineering Division fell in the first half of 2015 by 4.7
percent to EUR 1.351 bn (2014: EUR 1.418 bn). Operating profit was EUR 114
m, which was not as high as the figure for the prior-year period of EUR 141
m. The operating margin in the first six months of 2015 was 8.4 percent
(2014: 9.9 percent). The operating margin continues to be above the
industry average and matches the target Linde set itself for the current
financial year.

Forecast: Order intake in Linde's Engineering Division in the first half of
2015 was significantly lower than expected as a result of the persistently
low price of oil and the resultant faltering demand in plant construction.
The revenue forecast in the Engineering Division for the 2015 financial
year has therefore been revised down. Linde is now seeking to generate
revenue of between EUR 2.5 bn and EUR 2.7 bn, compared with its previous