Performance vs combined Linde + Praxair

% change YoY
  • Corporate Sales
  • Corporate Operating Income
  • Proforma Sales
  • Proforma Operating Income
,Corporate Sales,Corporate Operating Income,Proforma Sales,Proforma Operating Income 2014 Q1,5.2%,7.3%,null,null 2014 Q2,0.5%,0.9%,null,null 2014 Q3,3.5%,3.2%,null,null 2014 Q4,-1.7%,-10.3%,null,null 2015 Q1,-9.8%,-10.7%,null,null 2015 Q2,-9.3%,-19.2%,null,null 2015 Q3,-14.1%,-15.7%,null,null 2015 Q4,-13.2%,-11.5%,null,null 2016 Q1,-6.6%,-7.9%,null,null 2016 Q2,-5.8%,7.3%,null,null 2016 Q3,-0.6%,-9.7%,null,null 2016 Q4,2.1%,0.9%,null,null 2017 Q1,4.6%,1.9%,null,null 2017 Q2,1.9%,0.8%,null,null 2017 Q3,4.6%,20.7%,null,null 2017 Q4,5.1%,10.5%,null,null 2018 Q1,7.8%,23.0%,null,null 2018 Q2,8.9%,15.6%,null,null 2018 Q3,1.7%,2.8%,null,null 2018 Q4,0.0%,3.6%,null,null 2019 Q1,-15.0%,-13.9%,-0.4%,1.9% 2019 Q2,-14.0%,-10.9%,0.4%,5.9% 2019 Q3,-14.1%,1.5%,0.7%,16.5% 2019 Q4,-11.3%,-1.7%,0.8%,16.5% 2020 Q1,-2.5%,10.0%,-2.5%,10.0%
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Q1 group sales at $6.74Bn were down nearly -5% sequentially and -2½%YoY (on a pro forma and reported basis)

Group Operating Income at $1.35Bn was down sequentially, partly due to seasonality, but up +18% YoY

Solid operating leverage sequentially and YoY – broad based price improvement and continued progress on productivity

Operating Cash Flow increased sequentially by +26%



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Margin vs combined Linde + Praxair

% change YoY
  • Old Linde + Praxair margin
  • New Linde plc margin
,Old Linde + Praxair margin,New Linde plc margin 2014 Q1,16.2%,null 2014 Q2,16.6%,null 2014 Q3,16.1%,null 2014 Q4,15.6%,null 2015 Q1,16.0%,null 2015 Q2,14.8%,null 2015 Q3,15.8%,null 2015 Q4,15.9%,null 2016 Q1,15.8%,null 2016 Q2,16.8%,null 2016 Q3,14.4%,null 2016 Q4,15.8%,null 2017 Q1,15.4%,null 2017 Q2,16.7%,null 2017 Q3,16.6%,null 2017 Q4,16.6%,null 2018 Q1,17.5%,17.4% 2018 Q2,17.7%,17.4% 2018 Q3,16.8%,17.1% 2018 Q4,17.2%,17.2% 2019 Q1,17.8%,17.8% 2019 Q2,18.3%,18.3% 2019 Q3,19.8%,19.8% 2019 Q4,19.0%,19.0% 2020 Q1,20.1%,20.1%
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Group Operating Margin at over 20% in Q1 compares with an average of around 16% for combined Linde and Praxair over the pre-merger years 

Cost reduction and other charges $131m in Q1.  Includes 600 eliminations, mostly in Europe and Engineering – actions expected to continue into 2021

R&D costs maintained at equivalent of 0.7% of sales

Reported After tax ROC up sequentially to over 12% up 170bp YoY

Outlook for 2020 dominated by expectations of pace of recovery from post-Covid low – April in range of -10%-25% depending on stage of lockdown



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New Business Profile

  • Americas gases
  • EMEA gases
  • APAC gases
  • Engineering
  • Other
,Americas gases,EMEA gases,APAC gases,Engineering,Other ,39.0%,23.6%,20.5%,9.9%,6.9%
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Following the various divestitures, the new Linde plc business is split geographically with Americas Gases the largest followed by Europe/M.East/Africa and AsiaPacific. 11 countries account for nearly two-thirds of gas sales

Engineering accounts for 10% of global sales. ‘Other’ business includes small global gas related businesses in Global Helium and Electronic Materials as well as non-gas businesses such as Technologies and GIST Distribution



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Gases Revenue Growth Drivers

  • Natural Gas
  • Currency
  • Acquisition/Divest
  • Reported Growth
  • Underlying Growth
,Natural Gas,Currency,Acquisition/Divest,Reported Growth,Underlying Growth 2014 Q1,0.9%,-5.2%,0.8%,0.7%,4.1% 2014 Q2,0.0%,-4.0%,0.5%,-0.5%,2.9% 2014 Q3,-0.2%,-1.0%,0.0%,3.2%,4.4% 2014 Q4,-0.1%,-0.3%,0.0%,1.7%,2.1% 2015 Q1,-2.0%,2.1%,0.1%,1.2%,1.0% 2015 Q2,-1.8%,2.2%,0.4%,1.7%,0.9% 2015 Q3,-1.5%,-1.6%,0.4%,-2.2%,0.5% 2015 Q4,-1.5%,-2.0%,0.8%,-2.6%,0.1% 2016 Q1,-1.0%,-4.7%,0.7%,-4.4%,0.6% 2016 Q2,-0.9%,-4.6%,1.4%,-3.9%,0.2% 2016 Q3,0.0%,-1.8%,0.9%,-1.9%,-1.0% 2016 Q4,0.5%,-0.9%,0.8%,2.3%,2.0% 2017 Q1,1.5%,2.5%,-0.2%,6.5%,2.7% 2017 Q2,1.4%,0.8%,-0.5%,3.6%,2.0% 2017 Q3,0.7%,-1.5%,0.4%,2.7%,3.1% 2017 Q4,0.2%,-2.2%,0.0%,2.2%,4.2% 2018 Q1,0.2%,-3.5%,0.0%,0.6%,3.9% 2018 Q2,0.3%,-2.5%,0.0%,3.1%,5.4% 2018 Q3,0.6%,-2.8%,0.0%,3.6%,5.7% 2018 Q4,0.9%,-0.7%,-1.1%,3.2%,4.2% 2019 Q1,0.9%,-4.8%,-12.5%,-12.0%,4.5% 2019 Q2,0.0%,-4.1%,-12.3%,-13.1%,3.3% 2019 Q3,-1.2%,-2.6%,-13.5%,-14.4%,2.9% 2019 Q4,-1.6%,-1.5%,-15.2%,-16.6%,1.7% 2020 Q1,-1.0%,-2.4%,0.0%,-1.2%,2.1%
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Reported gas sales were only marginally down at -1% YoY in Q1 after four consecutive quarter of major adjustments due to post-merger divestments required by competition authorities 

Negative impacts of -3% from currency were driven across all three regions. 

Energy cost pass-through impact of around -1% globally was mainly driven by Americas with Europe also seeing a negative contribution – this reflects both the scale of the energy price swings and also differences in the business profile by region



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Gases Underlying Growth Drivers

% YoY Growth
  • 4.1%
  • 2.8%
  • 1.3%
2014 Q1,4.1%,2.8%,1.3% 2014 Q2,2.9%,2.2%,0.7% 2014 Q3,4.4%,2.9%,1.5% 2014 Q4,2.1%,1.3%,0.8% 2015 Q1,1.0%,0.8%,0.1% 2015 Q2,0.9%,0.4%,0.5% 2015 Q3,0.5%,0.0%,0.5% 2015 Q4,0.1%,-0.4%,0.5% 2016 Q1,0.6%,0.3%,0.3% 2016 Q2,0.2%,0.3%,-0.1% 2016 Q3,-1.0%,-1.1%,0.1% 2016 Q4,2.0%,1.9%,0.1% 2017 Q1,2.7%,3.3%,-0.6% 2017 Q2,2.0%,2.6%,-0.7% 2017 Q3,3.1%,3.6%,-0.5% 2017 Q4,4.2%,4.7%,-0.5% 2018 Q1,3.9%,3.2%,0.7% 2018 Q2,5.4%,4.0%,1.4% 2018 Q3,5.7%,4.1%,1.6% 2018 Q4,4.2%,2.9%,1.3% 2019 Q1,4.5%,2.8%,1.7% 2019 Q2,3.3%,1.0%,2.3% 2019 Q3,2.9%,0.7%,2.2% 2019 Q4,1.7%,-0.5%,2.2% 2020 Q1,2.1%,-0.4%,2.4%
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Underlying growth in gases sales improved slightly to +2% YoY in Q1 –  still below the average of the last 2 years for the combined performance of old Linde plus old Praxair

Contribution from pricing was again over +2% YoY, its highest rate in recent years, while the volume impact was again negative overall at around –½%, its lowest contribution since mid-2016

‘Other business’ +4% growth in Q1 partly driven by growth in global helium sales

Expecting continued price increase impact of around +2% through 2020 despite deterioration in volume growth – reflects experience in 2008/9 recession



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Americas Underlying Growth % growth vs Previous year

  • New Linde plc Volume
  • New Linde plc Total
  • Praxair Volume
  • Praxair Total
  • Linde Total
,New Linde plc Volume,New Linde plc Total,Praxair Volume,Praxair Total,Linde Total 2014 Q1,null,null,3.6%,5.1%,4.2% 2014 Q2,null,null,3.0%,5.0%,3.4% 2014 Q3,null,null,1.4%,2.0%,5.3% 2014 Q4,null,null,1.6%,2.0%,5.5% 2015 Q1,null,null,-0.2%,1.0%,5.2% 2015 Q2,null,null,-2.4%,-1.0%,8.8% 2015 Q3,null,null,-4.0%,-3.0%,10.9% 2015 Q4,null,null,-4.4%,-3.0%,5.9% 2016 Q1,null,null,-4.4%,-4.0%,1.8% 2016 Q2,null,null,-1.4%,-1.0%,-0.2% 2016 Q3,null,null,-0.4%,0.0%,-6.9% 2016 Q4,null,null,-1.2%,-2.0%,2.3% 2017 Q1,null,null,2.4%,4.0%,-2.6% 2017 Q2,null,null,0.8%,4.0%,-9.8% 2017 Q3,null,null,2.8%,4.0%,-2.6% 2017 Q4,null,null,7.0%,9.0%,-6.6% 2018 Q1,null,null,3.4%,6.0%,1.0% 2018 Q2,null,null,4.0%,6.0%,5.2% 2018 Q3,null,null,3.8%,7.0%,7.0% 2018 Q4,null,null,1.8%,2.6%,null 2019 Q1,3.0%,5.0%,null,null,null 2019 Q2,1.0%,4.0%,null,null,null 2019 Q3,2.0%,5.0%,null,null,null 2019 Q4,1.0%,3.0%,null,null,null 2020 Q1,2.0%,4.0%,null,null,null
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USA accounts for over 70% ($6.8Bn) of Americas sales with Brazil, Mexico and Canada each around 7-10% (over $700m)

Americas underlying growth in 2019 for Linde plc on a pro forma basis remains similar to that of old Praxair through 2017/8 – Q1 saw a modest acceleration in growth with volume growth returning to around +2% and price/mix impact again at +2% 

YoY volume growth led by healthcare (30% of region sales) and food & beverage – solid year expected for Lincare business in USA



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EMEA Underlying Growth % growth vs Previous year

  • New Linde plc Volume
  • New Linde plc Total
  • Praxair Volume
  • Praxair Total
  • Linde Total
,New Linde plc Volume,New Linde plc Total,Praxair Volume ,Praxair Total,Linde Total 2014 Q1,null,null,1.0%,2.0%,1.2% 2014 Q2,null,null,0.0%,1.0%,-0.2% 2014 Q3,null,null,1.0%,2.0%,1.4% 2014 Q4,null,null,-1.0%,-1.0%,-2.0% 2015 Q1,null,null,0.0%,1.0%,-1.6% 2015 Q2,null,null,-1.0%,-1.0%,-1.4% 2015 Q3,null,null,3.0%,3.0%,-1.8% 2015 Q4,null,null,3.0%,4.0%,0.0% 2016 Q1,null,null,2.0%,2.0%,-0.2% 2016 Q2,null,null,3.0%,4.0%,-0.2% 2016 Q3,null,null,0.0%,0.0%,-2.0% 2016 Q4,null,null,1.0%,1.0%,2.0% 2017 Q1,null,null,6.0%,6.0%,4.4% 2017 Q2,null,null,4.0%,5.0%,1.4% 2017 Q3,null,null,4.0%,5.0%,2.9% 2017 Q4,null,null,5.0%,5.0%,2.9% 2018 Q1,null,null,2.0%,3.0%,3.0% 2018 Q2,null,null,2.0%,5.0%,5.4% 2018 Q3,null,null,1.0%,4.0%,3.3% 2018 Q4,null,null,-1.0%,0.0%,null 2019 Q1,0.0%,1.0%,null,null,null 2019 Q2,-1.0%,1.0%,null,null,null 2019 Q3,0.0%,2.0%,null,null,null 2019 Q4,-2.0%,1.0%,null,null,null 2020 Q1,-1.0%,1.0%,null,null,null
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Within Europe/M.East/Africa, Germany accounts for over 20% ($1.2Bn) of region sales with UK and Eastern Europe each around 12-16% (over $700m) with Rest of Europe sales of $2.4Bn and M.East/Africa nearly $500m 

EMEA underlying growth maintained at around +1% YoY in Q1 – recent growth has been modest and below the performance of both Linde and Praxair (since mostly divested) in most quarters prior to the merger

Volume contribution was negative by -1% in Q1 continuing the weaker trend seen since early 2017 reflecting the sluggish economic environment - while pricing impact eased to +2%

Volume decline driven by weak industrial production with manufacturing end market accounting for nearly 20% of region sales which is significantly higher than other regions. Merchant volumes are reported to be down about -15% in April



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Asia Pacific Underlying Growth % growth vs Previous year

  • New Linde plc Volume
  • New Linde plc Total
  • Praxair Volume
  • Praxair Total
  • Linde Total
,New Linde plc Volume,New Linde plc Total,Praxair Volume,Praxair Total,Linde Total 2014 Q1,null,null,9.0%,11.0%,4.6% 2014 Q2,null,null,5.0%,6.0%,6.2% 2014 Q3,null,null,10.0%,11.0%,5.4% 2014 Q4,null,null,5.0%,6.0%,2.6% 2015 Q1,null,null,1.0%,1.0%,0.0% 2015 Q2,null,null,1.0%,1.0%,-0.8% 2015 Q3,null,null,5.0%,6.0%,-2.5% 2015 Q4,null,null,4.0%,4.0%,-1.1% 2016 Q1,null,null,6.0%,5.0%,3.5% 2016 Q2,null,null,6.0%,5.0%,-0.5% 2016 Q3,null,null,2.0%,1.0%,0.3% 2016 Q4,null,null,6.0%,5.0%,3.9% 2017 Q1,null,null,9.0%,8.0%,4.9% 2017 Q2,null,null,10.0%,11.0%,5.7% 2017 Q3,null,null,13.0%,15.0%,8.3% 2017 Q4,null,null,11.0%,14.0%,7.9% 2018 Q1,null,null,11.0%,14.0%,4.6% 2018 Q2,null,null,11.0%,14.0%,4.0% 2018 Q3,null,null,7.0%,9.0%,6.7% 2018 Q4,null,null,7.0%,7.0%,null 2019 Q1,5.0%,7.0%,null,null,null 2019 Q2,3.0%,5.0%,null,null,null 2019 Q3,-1.0%,0.0%,null,null,null 2019 Q4,-2.0%,0.0%,null,null,null 2020 Q1,-5.0%,-3.0%,null,null,null
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China & Taiwan sales (combined $1.9Bn) account for 40% of AsiaPacific sales followed by Australia (over $900m), S.Korea and India (each nearly $500m). Electronics market accounts for 25% of sales in this region – higher than other regions

Asia Pacific underlying growth of Linde plc has slowed significantly through 2019 on a pro forma basis and was down -3% YoY in Q1

The negative volume impact increased to -5% YoY, with -4% due to Covid and -2% due to high Equipment sales in the prior year – excluding these volumes were up +2%. Pricing impact was maintained at +2% in Q1.

Covid impact was greatest in China (which appears to have stabilised with liquid back up towards 90% of pre-crisis levels – but by quarter end was spreading into other countries in the region



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Total Sales by Business

Q1 2020, % change YoY
  • Total
  • Onsites
  • All Merchant
  • Liquid Bulk
  • Packaged
,Total,Onsites,All Merchant,Liquid Bulk,Packaged ,-3.0%,-6.6%,-1.2%,2.6%,-3.7%
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Over 40% of Linde plc global gas sales are in packaged gases with nearly 30% in liquid bulk (giving total combined merchant sales of over 70%) and over a quarter in onsites 

Sharp fall in reported global onsite sales (-6½% YoY) in Q1 – substantially driven by cost pass-through with volumes appearing to be relatively flat

Within merchant (Spiritus definition) solid growth in liquid bulk sales in Q1 (+2½%) was more than offset by a significant decline in packaged gases (over -3½%) giving a net merchant sales decline of more than -1% YoY. With pricing reported to be higher globally this indicates a volume decline of -3-4%



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Americas Sales by Business

Q1 2020, % change YoY
  • Total
  • Onsites
  • All Merchant
  • Liquid Bulk
  • Packaged
,Total,Onsites,All Merchant,Liquid Bulk,Packaged ,-0.9%,-7.5%,0.5%,3.1%,-0.9%
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Nearly half of Linde plc Americas gas sales are in packaged gases with nearly 30% in liquid bulk (giving total combined merchant sales of nearly 75%) and a quarter in onsites 

Sharp fall in reported onsite sales (-7½% YoY) in Q1 – driven by negative impact of cost pass-through vs indications of modest volume growth

Within merchant (Spiritus definition) solid growth in liquid bulk sales in Q1 (+3%) was only partly offset by a small decline in packaged gases (around -1%) giving a net merchant growth of around +½% YoY. Appears to be turned into a slight decline in volumes when adjusted for increased pricing 



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Europe Sales by Business

Q1 2020, % change YoY
  • Total
  • Onsites
  • All Merchant
  • Liquid Bulk
  • Packaged
,Total,Onsites,All Merchant,Liquid Bulk,Packaged ,-2.9%,-9.0%,-1.5%,10.1%,-7.2%
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Around half of Linde plc European gas sales are in packaged gases with nearly 30% in liquid bulk (giving total combined merchant sales of nearly 80%) compared with only marginally over 20% in onsites 

Sharp fall in reported onsite sales (-9% YoY) in Q1 – apparently due to a combination of negative cost pass-through and lower volumes

Within merchant (Spiritus definition) strong reported growth in liquid bulk sales in Q1 (+10%) was partly offset by a significant decline in packaged gases (-7%) giving a net merchant sales decline of  -1½% YoY with a significantly sharper fall in volumes partly offset by improved pricing



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AsiaPacific Sales by Business

Q1 2020, % change YoY
  • Total
  • Onsites
  • All Merchant
  • Liquid Bulk
  • Packaged
,Total,Onsites,All Merchant,Liquid Bulk,Packaged ,-6.4%,-3.7%,-7.4%,-7.6%,-7.0%
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Around 35% of Linde plc Asia Pacific gas sales are in onsites with a similar proportion in liquid bulk and close to a quarter in packaged gases (giving total combined merchant sales of slightly over 60%)

Significant decline seen in Q1 in reported sales in all major businesses 

Fall in reported onsite sales (-3½% YoY) in Q1 with negative impact of energy cost pass-through more than offsetting indications of higher volumes

Within merchant (Spiritus definition) significant declines in range of -7 to -7½% in both liquid bulk and packaged gases with sharp falls in volumes only partly offset by increased pricing



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Profit profile

$m Operating Income FY2019
  • EMEA gases
  • APAC gases
  • Engineering
  • Other
Americas gases,EMEA gases,APAC gases,Engineering,Other 661,355,281,91,-36
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Americas gases is the major source of profits for Linde plc accounting for nearly half of group operating income with APAC and EMEA each around a quarter

Gases operating income at $1.3Bn in Q1 was up by nearly +8% YoY. Operating Income growth in the Americas was +13% while APAC and Europe were up only +3% and +2% respectively.  Engineering showed an +18% improvement driven by project and productivity performance

Group operating margin in Q1 rose to over 20% with regional Gases businesses reporting a combined margin approaching 23% – both of these are up by around 230bp YoY. Engineering margin improved sequentially from 12% in Q4 to 15% in Q1 



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Americas Operating Margin

  • New Linde plc pro forms
  • Old Praxair
  • Old Linde
,New Linde plc pro forms,Old Praxair,Old Linde 2014 Q1,null,23.7%,12.5% 2014 Q2,null,23.9%,11.0% 2014 Q3,null,24.7%,11.6% 2014 Q4,null,23.9%,12.9% 2015 Q1,null,24.4%,13.9% 2015 Q2,null,25.1%,13.5% 2015 Q3,null,25.2%,14.3% 2015 Q4,null,26.8%,12.9% 2016 Q1,null,24.3%,13.4% 2016 Q2,null,24.3%,13.8% 2016 Q3,null,23.8%,11.1% 2016 Q4,null,24.2%,15.9% 2017 Q1,null,22.2%,12.4% 2017 Q2,null,23.5%,11.8% 2017 Q3,null,23.7%,11.6% 2017 Q4,null,23.9%,11.8% 2018 Q1,22.3%,23.9%,12.8% 2018 Q2,23.7%,25.1%,16.9% 2018 Q3,23.7%,24.6%,14.4% 2018 Q4,22.7%,24.0%,null 2019 Q1,21.6%,null,null 2019 Q2,23.2%,null,null 2019 Q3,24.2%,null,null 2019 Q4,24.7%,null,null 2020 Q1,24.7%,null,null
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Operating Margin in the Americas again over 24½% in Q1, approaching the historic peak performance of Praxair in this region in 2015 – an increase of 310 bp YoY

Much of the former Linde business in the region has been divested, dampening its adverse impact on the region’s performance. 

On a pro forma basis margin in 2018 Linde plc margin was below that of Praxair in this region but above that of the former Linde 



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EMEA Operating Margin

  • New Linde plc pro forma
  • Old Praxair
  • Old Linde
,New Linde plc pro forma,Old Praxair,Old Linde 2014 Q1,null,19.9%,18.3% 2014 Q2,null,19.1%,19.5% 2014 Q3,null,18.4%,18.9% 2014 Q4,null,17.7%,17.2% 2015 Q1,null,19.0%,18.5% 2015 Q2,null,19.0%,19.6% 2015 Q3,null,18.6%,17.5% 2015 Q4,null,19.1%,17.7% 2016 Q1,null,19.4%,18.6% 2016 Q2,null,19.2%,19.8% 2016 Q3,null,19.7%,18.2% 2016 Q4,null,20.2%,17.3% 2017 Q1,null,18.8%,19.1% 2017 Q2,null,19.3%,19.3% 2017 Q3,null,19.4%,20.1% 2017 Q4,null,19.7%,20.5% 2018 Q1,21.3%,18.7%,23.1% 2018 Q2,19.9%,19.6%,18.3% 2018 Q3,18.2%,19.1%,16.8% 2018 Q4,17.4%,23.1%,null 2019 Q1,20.6%,null,null 2019 Q2,19.8%,null,null 2019 Q3,20.5%,null,null 2019 Q4,21.3%,null,null 2020 Q1,21.7%,null,null
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Operating Margin in the EMEA region at over 21½% in Q1 and is above the previous peak for which pro forma results are available

Margin continues to recover sequentially – driven by pricing and productivity improvements - and was significantly above the prior year on a pro forma basis when returns were on a declining trend

Much of the former Praxair business in the region had to be divested although there had been little difference in the overall profit performance between the two businesses in recent years until late-2018



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AsiaPacific Operating Margin

  • New Linde plc pro forma
  • Old Praxair
  • Old Linde
,New Linde plc pro forma,Old Praxair,Old Linde 2014 Q1,null,19.1%,12.0% 2014 Q2,null,19.3%,13.4% 2014 Q3,null,17.6%,12.1% 2014 Q4,null,18.9%,13.1% 2015 Q1,null,18.6%,10.4% 2015 Q2,null,17.8%,12.8% 2015 Q3,null,19.5%,11.7% 2015 Q4,null,18.6%,11.0% 2016 Q1,null,16.8%,12.2% 2016 Q2,null,17.0%,12.2% 2016 Q3,null,17.4%,13.3% 2016 Q4,null,19.7%,13.1% 2017 Q1,null,19.0%,11.5% 2017 Q2,null,19.0%,12.8% 2017 Q3,null,19.5%,14.4% 2017 Q4,null,19.1%,11.9% 2018 Q1,17.7%,21.8%,15.0% 2018 Q2,17.9%,21.3%,16.7% 2018 Q3,16.6%,22.6%,17.3% 2018 Q4,17.0%,23.2%,null 2019 Q1,19.1%,null,null 2019 Q2,20.4%,null,null 2019 Q3,21.1%,null,null 2019 Q4,21.3%,null,null 2020 Q1,21.0%,null,null
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Operating Margin in Asia Pacific fell sequentially to 21% in Q1 but was up by 190 bp YoY

This performance sits between that of Praxair and Linde historically in this region. Region performance includes the impact of required divestments of several businesses, particularly significant parts of Linde S.Korea and Praxair in India



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Capital Expenditure

  • Old Praxair
  • Old Linde
,Old Praxair,Old Linde 2013 Q1,447.4,639.7 2013 Q2,501.1,687.2 2013 Q3,495.4,798.7 2013 Q4,495.4,907.5 2014 Q1,377.3,542.5 2014 Q2,368.6,564.4 2014 Q3,412.8,563.8 2014 Q4,462.7,821.5 2015 Q1,381.1,319.8 2015 Q2,337.9,493.8 2015 Q3,388.8,526.1 2015 Q4,371.5,758.0 2016 Q1,310.1,330.0 2016 Q2,342.7,443.8 2016 Q3,361.0,456.9 2016 Q4,392.6,606.9 2017 Q1,313.9,385.5 2017 Q2,312.0,399.3 2017 Q3,307.2,470.2 2017 Q4,325.4,736.2 2018 Q1,312.0,425.1 2018 Q2,337.0,535.2 2018 Q3,364.8,469.8 2018 Q4,436.8,696.1 2019 Q1,null,843.0 2019 Q2,null,865.0 2019 Q3,null,959.0 2019 Q4,null,1015.0 2020 Q1,null,803.0
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Linde capital expenditure eased back towards $800m, its lowest level since the merger – however this broadly reflects project timing profiles

Project capex slipped sequentially to $385m in Q1 but this was up +19% YoY – base capex (mainly support equipment and smaller projects) was down -19% YoY at $418m

Sale of gas backlog fell back to $4.0Bn – over 60% in APAC and 30% in Americas while over half is for refining, 16% for chemicals and 16% for electronics. Sale of Equipment backlog also fell marginally to $5.4Bn giving a total backlog of $9.5Bn

Capex forecast for CY2020 reduced to $3.0-3.4Bn, a reduction of some $400m vs February forecast

Started up 5 new plants in Q1 and also signed several new projects



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Capex/Sales ratio

  • Praxair
  • Linde
,Praxair,Linde 2013 Q1,16.4%,12.9% 2013 Q2,17.6%,13.6% 2013 Q3,17.4%,17.3% 2013 Q4,17.4%,19.3% 2014 Q1,13.2%,11.8% 2014 Q2,12.5%,11.9% 2014 Q3,13.9%,11.9% 2014 Q4,16.4%,18.4% 2015 Q1,14.7%,7.7% 2015 Q2,13.1%,11.2% 2015 Q3,15.3%,12.4% 2015 Q4,15.2%,18.2% 2016 Q1,13.1%,8.3% 2016 Q2,13.6%,10.6% 2016 Q3,14.1%,11.1% 2016 Q4,15.7%,14.5% 2017 Q1,12.2%,9.5% 2017 Q2,11.6%,9.6% 2017 Q3,11.1%,10.9% 2017 Q4,11.6%,16.7% 2018 Q1,11.0%,9.9% 2018 Q2,11.7%,12.2% 2018 Q3,12.8%,10.9% 2018 Q4,15.8%,15.4% 2019 Q1,null,14.5% 2019 Q2,null,14.6% 2019 Q3,null,16.3% 2019 Q4,null,17.5% 2020 Q1,null,14.2%
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Capex to sales ratio fell back towards 14% - although still higher than the trend for the combined businesses over the previous five years

This ratio drops back below the average of Tier 1 companies  

Strong balance sheet should allow group to take advantage of growth opportunities – including acquisition of customer owned tonnage plants (both ASU and HyCO) which is viewed as a development opportunity.

Completed sale of parts of Linde China in Q1 



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