Bank cuts earnings outlook on Linde on lower Q1 demand

05 May 2009 15:10  [Source: ICIS news]

LONDON (ICIS news)--Cazenove reduced its earnings forecasts for German industrial gases group Linde after it reported a 28% drop in first quarter net profit, the investment bank said on Tuesday.

Cazenove's forecast for Linde’s full-year 2009 earnings per share (EPS) was reduced by 16%, while the 2010 estimate was lowered by 11%. 

“Trading is holding up better than for many others, but a noticeable impact from lower customer activity is now clearly visible in both the core gases area, and the lumpier engineering division,” said Cazenove in a note to investors.

“[This year] will see the impact of lower sales and profits overall,” it said.

The bank expected Linde to be hit by further volume decline in the second half of the year, but to rebound in 2010.

Linde reported a 28% decline in its first quarter net profits to €115m ($154m), citing “substantial falls in demand” and negative foreign exchange effects.

($1 = €0.75)

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By: Mark Watts
+44 20 8652 3214

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