Linde defies crisis with profitability, cash flows – Moody’s

19 March 2010 16:45  [Source: ICIS news]

TORONTO (ICIS news)--Germany-based industrial gases and chemicals engineering major Linde remains profitable despite the economic downturn, credit ratings agency Moody’s said on Friday, adding it may upgrade Linde’s ratings.

“Despite the headwind of the global economic downturn reducing revenues by some 11%, Linde could actually improve profitability margins,” Moody’s analyst Oliver Giani said in commenting on Linde’s 2009 results.

At the same time, Linde had increased cash flow to support a €119m ($163m) net debt reduction, Giani said.

Moody’s has placed Linde’s ratings on review for a possible upgrade, a move that was also supported by a positive outlook for the highly concentrated industrial gases sector in general, it said.

Linde said this week it expected to post higher sales and operating profit in 2010, with its gases division likely posting record earnings.

In the 2009 crisis year, Linde recorded an operating profit of €2.39bn on sales of €11.2bn.

While both operating profit and sales were down from 2008 – falling 6.7% and 11.5%, respectively - operating margin rose to 21.3%, from 20.2% in 2008.

($1 = €0.73)

For more on Linde visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index