LINDE PLC Quarterly Report for Q2 Ended Jun 30, 2022

Summary

Linde plc reported strong top-line growth in the second quarter of 2022, with sales increasing by 12% year-over-year, driven by a combination of higher pricing, volume increases, and cost pass-through mechanisms. While reported operating profit saw a significant decline due to substantial charges related to the Russia-Ukraine conflict and the deconsolidation of Russian subsidiaries, adjusted operating profit demonstrated robust growth of 8% for the quarter, indicating the underlying strength of its core business operations. On a per-share basis, reported diluted EPS from continuing operations fell significantly, largely impacted by the aforementioned charges and a higher effective tax rate. However, adjusted diluted EPS from continuing operations saw a healthy increase of 15%, underscoring the company's ability to generate value for shareholders despite geopolitical headwinds. The company also continued its aggressive share repurchase program, returning substantial capital to investors.

Key Highlights

• 1Sales increased by 12% year-over-year to $8.46 billion in Q2 2022, driven by price attainment, volume, and cost pass-through.
• 2Reported operating profit decreased by 48% to $589 million due to significant charges related to the Russia-Ukraine conflict and deconsolidation of Russian subsidiaries.
• 3Adjusted operating profit grew by 8% to $1.99 billion, demonstrating the resilience of Linde's core operations.
• 4Reported diluted EPS from continuing operations declined by 54% to $0.74, impacted by special charges and a higher effective tax rate.
• 5Adjusted diluted EPS from continuing operations increased by 15% to $3.10, reflecting strong underlying performance.
• 6The company repurchased $3.3 billion of its shares in the first six months of 2022 as part of an ongoing $10 billion program.
• 7Cash provided by operating activities increased by 5% to $4.13 billion for the six months ended June 30, 2022.

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