Germany's Linde Q3 net income falls 5 pct

By GEORGE FREY

posted: 25 DAYS AGO

Text SizeAAA

FRANKFURT -German industrial gases company Linde AG on Monday reported third-quarter net income fell 5 percent as revenue dropped amid the economic downturn, but noted that demand was improving.

Linde, based in Munich, said its net income in the July-September period fell to euro169 million ($248 million) from euro177 million in the third quarter of 2008.

Revenue for the period fell nearly 10 percent to euro2.8 billion from euro3.1 billion in the third quarter of 2008.

While Linde said signs of a recovery are emerging, it does not expect to match the net income of euro717 million and revenue of almost euro13 billion that it made in 2008.

Still, the company said it expects its financial performance to improve for the rest of the year, as third quarter operating income rose nearly 13 percent compared with the second quarter.

"The positive trends we were seeing at the end of the second quarter have continued to strengthen," Wolfgang Reitzle, the chief executive, said in the company's report.

"The measures we have taken to achieve sustainable increases in productivity are having an even greater impact."

The news sent the company's shares up about 1.5 percent to euro72.43, in Frankfurt morning trading.

Linde produces gases, including hydrogen, oxygen, nitrogen and argon, for the medical, industrial and scientific fields. The company also engineers and builds gas processing plants to produce those gases.

Linde said its gases division recorded euro2.3 billion in revenue for the quarter and an operating income of euro625 million — compared with revenue of euro2.4 billion and operating income of euro625 million a year earlier.

The engineering division reported revenue of euro564 million for the quarter, down from the euro652 million a year ago. Operating profit at the engineering division was slightly lower at euro55 million from euro57 million in the third quarter 2008.

For the first nine months of the year, Linde reported a near 9 percent decline in operating income to euro1.7 billion while revenue fell 12 percent to euro8.3 billion.

Linde said in terms of regions, western Europe saw gases revenue fall, largely as a result of the fall of the British pound's value as well as other currency rate fluctuations.

"The market environment in western Europe saw a further period of stabilization, although there were no signs as yet of a widespread market recovery," Linde said in its report.

The Americas and eastern Europe & Asia regions also saw gas sales and operating income declines, but the company noted there is evidence of improvement.

"Just as in the second quarter, very clear signs of an economic recovery continued to be evident as the year progressed in the Asia & Eastern Europe operating segment. This trend could be seen, for example, in the improved capacity utilization," Linde said.

—

On the Net:

http://www.linde.com

2009-11-02 06:02:50