Lincare helps to drive 10% Q1 net profit increase for Linde

06 May 2013 08:57  [Source: ICIS news]

SINGAPORE (ICIS)--Linde reported a 10% year-on-year increase in net profits for the first quarter of the year on Monday to €340m ($447.4m), which the Germany-based industrial gases and engineering specialist attributed in part to the acquisition of US healthcare gases company Lincare.

The company generated revenues of €4bn during the first three months of the year compared with €3.6bn in the first quarter of 2012. Lincare, which the company acquired for $4.6bn in July 2012, reported €397m in revenues during the period. First-quarter operating profit increased by 12.6% to €953m, Linde added.

“Despite less than favourable conditions especially in the mature markets, we have continued to achieve profitable growth. Our newly-acquired operations in the healthcare product area made the most significant contribution here,” said CEO Wolfgang Reitzle.

Gases division operating profit for the quarter increased by 14.5% year on year to €942m, driven by a 60% jump in profits in the Americas region to €272m on the back of the Lincare acquisition.

Division profits were also up slightly in the Europe, Middle East and Africa region, growing by 2.6% year on year to €430m despite “prevailing unfavourable economic conditions” in the eurozone. Linde attributed the increase to the €590m acquisition of the continental European homecare business of US-based Air Products in April 2012.

Operating profits for the gases division in Asia increased by 2.6% year on year during the quarter to €240m, as a result of expansions in south and east Asia and strong demand for cylinder and liquefied gases in the regions, as well as in Greater China.

Operating profit for the engineering division was down slightly during the quarter, falling to €66m compared with €73m in the first quarter of 2012.

Reitzle added that Linde is looking to increase 2013 revenues above 2012 levels, and generate €4bn in operating profit for the year. The company is targeting €5bn in operating profit for the 2016 financial year.

“We expect to achieve further increases over the coming months and we confirm our outlook,” he said.

($1 = €0.76)

By: Tom Brown
+44 208 652 3214

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