10-KPeriod: FY2022

LINDE PLC Annual Report, Year Ended Dec 31, 2022

Filed February 28, 2023For Securities:LIN

Summary

Linde plc reported robust financial performance for the fiscal year ended December 31, 2022, with sales reaching $33.36 billion, an 8% increase year-over-year. This growth was primarily driven by higher pricing across all segments, contributing 7% to sales, with a further 6% from cost pass-through mechanisms. Despite inflationary pressures and adverse currency movements that impacted reported operating profit, adjusted operating profit saw a 10% increase, reflecting strong pricing power and productivity initiatives. The company's global industrial gas operations in the Americas, EMEA, and APAC segments all demonstrated sales growth, with operating profit in these regions increasing by 11%, 7%, and 11%, respectively. The Engineering segment also reported a 17% increase in operating profit. Linde actively managed its capital structure, repurchasing $5.13 billion in ordinary shares under its $10 billion repurchase program and paying $2.34 billion in dividends. The company ended the year with $5.44 billion in cash and cash equivalents, demonstrating solid liquidity. Management remains focused on operational efficiency and strategic growth opportunities, with long-term contracts providing stability. Key risks highlighted include economic downturns, rising energy and raw material costs, and international operational risks, though the company has mechanisms in place to mitigate some of these through contract terms and hedging strategies.

Financial Highlights

56 data points
Beta

Revenue

$33.36B

Net Income

$4.15B

12.4% Net Margin

EPS (Diluted)

$8.23

Total Assets

$79.66B

Cash & Equivalents

$5.44B

Free Cash Flow

$5.69B

Financial Statements
Beta
Revenue$33.36B
R&D Expenses$143.00M
SG&A Expenses$3.11B
Operating Income$5.37B
Interest Expense$277.00M
Net Income$4.15B
EPS (Basic)$8.30
EPS (Diluted)$8.23
Shares Outstanding (Basic)499.74M
Shares Outstanding (Diluted)504.04M

Key Highlights

  • 1Sales increased by 8% to $33.36 billion in 2022, driven primarily by higher pricing (7%) and cost pass-throughs (6%).
  • 2Adjusted operating profit increased by 10% to $7.90 billion, reflecting strong pricing and productivity initiatives that offset inflation and currency headwinds.
  • 3The Americas segment showed a 15% sales increase and an 11% operating profit increase, supported by volume, price, and cost pass-throughs.
  • 4The EMEA segment reported a 10% sales increase and a 7% operating profit increase, despite a 11% negative impact from currency translation.
  • 5The APAC segment saw a 6% sales increase and an 11% operating profit increase, with growth in volume and pricing offsetting currency impacts.
  • 6The Engineering segment's sales decreased slightly by 4% due to project timing and currency, but operating profit grew by 17%.
  • 7Linde returned significant capital to shareholders, repurchasing $5.13 billion of shares and paying $2.34 billion in dividends in 2022.

Frequently Asked Questions

Linde plc reported strong financial performance in 2022. Sales grew by 8% to $33.36 billion, driven by higher pricing and cost pass-throughs. Adjusted operating profit increased by 10% to $7.90 billion, showcasing the company's ability to manage costs and leverage pricing power despite inflationary pressures and currency fluctuations.

All major geographic segments experienced growth. The Americas segment saw a 15% sales increase and an 11% operating profit increase. EMEA reported a 10% sales increase and a 7% operating profit increase, while APAC achieved a 6% sales increase and an 11% operating profit increase. The Engineering segment's operating profit grew by 17%, though sales saw a slight decline.

Linde actively returned capital to shareholders in 2022. The company repurchased $5.13 billion of its ordinary shares under an ongoing $10 billion program and paid $2.34 billion in dividends. This demonstrates a commitment to enhancing shareholder value while maintaining a solid liquidity position with $5.44 billion in cash and cash equivalents at year-end.

Linde's primary risks include potential weakening economic conditions impacting customer demand, increases in the cost of energy and raw materials, and risks associated with its extensive international operations. The company also faces challenges related to currency exchange rate fluctuations and the need to keep pace with technological advancements. However, Linde employs contractual clauses for cost pass-throughs and hedges to mitigate some of these risks.