Summary
Linde plc's 2018 10-K filing details the transformative business combination with Praxair, Inc. and Linde AG, completed on October 31, 2018, establishing Linde as a global leader in the industrial gases industry. The company reported significant increases in sales and operating profit, largely driven by the merger. Despite the complexities of integrating the two entities and executing necessary divestitures to satisfy antitrust requirements, Linde demonstrated strong underlying sales growth from volume and pricing. Key financial highlights include a substantial increase in sales and operating profit, supported by operational improvements and strategic advantages from the merger. The company has a robust backlog of large projects, indicating future growth potential. Linde also remains committed to returning capital to shareholders, with substantial share repurchase programs in place. Investors should note the significant goodwill recognized from the merger and the ongoing integration efforts, which present both opportunities for synergy realization and potential risks. The company's financial position appears solid, with ample liquidity and a strong credit rating, though it is exposed to market risks such as currency fluctuations and energy price volatility.
Financial Highlights
56 data points| Revenue | $14.84B |
| R&D Expenses | $113.00M |
| SG&A Expenses | $1.63B |
| Operating Income | $5.25B |
| Interest Expense | $297.00M |
| Net Income | $4.38B |
| EPS (Basic) | $13.26 |
| EPS (Diluted) | $13.11 |
| Shares Outstanding (Basic) | 330.40M |
| Shares Outstanding (Diluted) | 334.13M |
Key Highlights
- 1Completed the transformative merger with Praxair, Inc. and Linde AG on October 31, 2018, creating the world's largest industrial gas company.
- 2Reported a 30% increase in sales to $14.9 billion in 2018, driven by the merger (24% contribution) and underlying sales growth of 6% (volume and price).
- 3Operating profit significantly increased by 115% to $5.2 billion, with adjusted operating profit up 19% year-over-year, reflecting merger synergies and operational performance.
- 4Income from continuing operations surged to $4.3 billion, with diluted EPS from continuing operations at $12.79, a substantial increase from $1.25 billion and $4.32 respectively in 2017.
- 5Ended 2018 with $4.5 billion in cash and cash equivalents, a significant increase from $0.6 billion in 2017, largely due to merger-related cash inflows and divestitures.
- 6Announced a $1.0 billion share repurchase program in December 2018, with an additional $6.0 billion program approved in January 2019.
- 7The company has a substantial backlog of $3.5 billion in large projects under construction, indicating a positive outlook for future growth.