10-QPeriod: Q3 FY2021

LINDE PLC Quarterly Report for Q3 Ended Sep 30, 2021

Filed October 29, 2021For Securities:LIN

Summary

Linde plc reported strong financial results for the third quarter and the first nine months of 2021, showcasing robust growth across key metrics. Sales increased by 12% year-over-year for the quarter to $7.7 billion, driven by a combination of higher volumes (8%) and price attainment (3%), along with favorable currency translations. This top-line growth translated into significant bottom-line improvements, with reported diluted EPS from continuing operations surging by 42% to $1.88 for the quarter. The company's adjusted operating profit also demonstrated substantial growth, up 19% to $1.8 billion for the quarter, highlighting operational efficiencies and effective pricing strategies. Geographically, the Americas and EMEA segments were standout performers, with double-digit sales growth and significant operating profit increases. The APAC segment also showed positive momentum, albeit at a more moderate pace, while the Engineering segment experienced a sales decline due to project timing. Linde's strong cash flow generation from operations, a significant increase in share repurchases, and a commitment to returning capital to shareholders through dividends underscore a healthy financial position and a focus on shareholder value.

Financial Highlights

54 data points
Beta

Revenue

$7.67B

Net Income

$979.00M

12.8% Net Margin

EPS (Diluted)

$1.88

Total Assets

$84.19B

Cash & Equivalents

$4.70B

Free Cash Flow

$1.81B

Financial Statements
Beta
Revenue$7.67B
R&D Expenses$36.00M
SG&A Expenses$793.00M
Operating Income$1.29B
Net Income$979.00M
EPS (Basic)$1.90
EPS (Diluted)$1.88
Shares Outstanding (Basic)515.17M
Shares Outstanding (Diluted)520.08M

Key Highlights

  • 1Linde plc reported a 12% increase in sales to $7.7 billion for Q3 2021 compared to Q3 2020, driven by 8% higher volumes and 3% price attainment.
  • 2Reported diluted EPS from continuing operations grew by 42% to $1.88 in Q3 2021, compared to $1.32 in Q3 2020.
  • 3Adjusted operating profit increased by 19% to $1.8 billion in Q3 2021, demonstrating strong underlying operational performance.
  • 4The Americas segment saw a 17% sales increase in Q3 2021, while the EMEA segment reported an 18% sales increase.
  • 5The company generated $6.5 billion in cash from operating activities for the first nine months of 2021, a 30% increase year-over-year.
  • 6Linde significantly ramped up share repurchases, with $3.2 billion spent in the first nine months of 2021, compared to $2.0 billion in the prior year period.

Frequently Asked Questions

Sales increased by 12% to $7.7 billion, primarily due to an 8% increase in volumes and a 3% increase in pricing. This operational strength, combined with favorable currency translations and effective cost management, led to a substantial 40% increase in reported income from continuing operations and a 42% rise in reported diluted EPS to $1.88.

Despite higher volumes and cost pass-through, Linde demonstrated good cost control. Selling, general, and administrative (SG&A) expenses increased by only 3% and as a percentage of sales decreased from 11.2% to 10.3%. The company also benefited from productivity initiatives, which helped to offset some of the cost pressures.

This 10-Q filing does not provide specific forward-looking guidance. The company typically provides quarterly updates on operating results, material trends, and financial guidance via earnings releases and investor teleconferences, which are available on their website.

Linde uses adjusted financial measures (e.g., Adjusted Operating Profit, Adjusted EPS) to provide a clearer view of its ongoing business performance by excluding items like cost reduction programs, purchase accounting impacts from the Linde AG merger, and pension settlement charges. These non-GAAP measures are intended to supplement investor understanding and are explained in detail in the 'Non-GAAP Measures and Reconciliations' section of the filing.