By Heide Oberhauser-Aslan DOW JONES NEWSWIRES
MUNICH (Dow Jones) – The gases and engineering group Linde expected after the crisis year 2009 for 2010 primarily due to its good full project pipeline in the gases business and other Cost savings again with an increase of revenue and operating Net Income. "We have every reason to confidently forward look, "said CEO Wolfgang Reitzle on Wednesday Munich. Given the uncertainties for the future economic Development, however, there was no reason for undue Optimism, he said. The company had sales of 2009 and Limit the productivity and earnings may decline despite the worldwide economic crisis has clearly improved.
Having become the positive outlook by Gasedivision. In the segment, the DAX companies expect the further particulars According to 2010 also has a sales and earnings growth. In terms of operating Results here will exceed the record level from the year 2008 will. In Asia, the gas business was growing by 20%, Reitzle said. In the gas business provides the manager in 2010 Scope for price increases. The aim was, through higher Prices largely to offset the cost increases.
Linde was reserved for the smaller Engineering Division. The market environment in international large-scale plant is in last year by a noticeable reluctance to award been marked by new projects, it said. At present, was always reckon with the postponement of new projects to.
Simultaneously, the company also sees signs of a Upturn in demand in the four major business segments Olefin, natural gas, air separation and hydrogen and Syngas plants. For 2010, Linde expects the Engineering Division with at least one turnover the previous year. In the operating margin the value of 8% remains unchanged, the target, said.
2009 suffered from the Engineering Division under the Customer retention for large projects. Order intake decreased by 600, therefore, 2009 Million to 2.458 billion euros. The order backlog at year-end remained 4.215 Billion (previous year: EUR 4.436 billion) but a high level. He was the Basis for a relatively stable business development In the next two years, said the Munich Group.
The measures to increase efficiency and sustainable Linde Process will continue to pursue. Unchanged are the Gross costs with the program HPO in the years 2009 to 2012 to around 650 million EUR 800 million Reduced EUR. In the past year have been savings in order to achieved more than EUR 300 million, said Reitzle. Since the accelerated program was started, the momentum is expected at the reduction of costs in 2010 tended to be lower, said Linde. 2009, the Group has mined mainly in the context of the HPO Program 4177 employees worldwide. In This year it is by no Reitzle details staff cuts in give greater extent. The company was 2010 for the headcount remain roughly at the level of late 2009, said the manager.
Should consolidate the economic recovery, will Linde Group sales and Group operating profit increase In 2011.
Financially, the Group, despite the still high Debt is well equipped for the future. "Around 95% of our Financial liabilities are not due until after the year 2010, "said CEO Reitzle. "The credit lines available to us available to meet the funding needs from over. "
With its high operating cash flow, Linde will also entail a Basis, to actively shape the development of the group. Last Two years, the net financial debt by 300 million to EUR 6.12 billion EUR be reduced.
The sales and profit figures for the past Fiscal year the company had said already on 4 Published in March. Thereafter, the consolidated sales amounted to 11.21 billion EUR by 11.5% below the previous year. That Group operating profit fell to 2.385 billion EUR by 6.7% weaker than 2009th The profit after tax and minority interests was to EUR 591 million back to 717 million euros in the previous year.
The dividend will Linde, despite sales and profit fall hold steady at EUR 1.80 per share. The company has the objective of Constantly increasing dividends, or at least constant, said Reitzle.
Linde thinks to large acquisitions, according to the manager not for the foreseeable future. Smaller and medium-sized acquisitions are But they might. For a capital, there was no Necessity.
Commerzbank analysts were positive after the figures voted. Linde’s full year results showed that the gradual improvement in sales of continuation. You’ll especially driven by emerging markets, where the dynamics after the already accelerated the third quarter was good. Furthermore, had the Gasespezialist its cost-cutting goals for the past year by 20% exceeded, said the observers. This supported their Expectation that the overall result of the current restructuring at the upper end of the expected range, or are they even was exceeded.
The Linde shares negotiated in the early afternoon at 86.77 EUR 1.2% in the black.
Website: www.linde.com - By Heide Oberhauser-Aslan, Dow Jones Newswires; +49 (0) 69 29 725 113, heide.oberhauser @ dowjones.com DJG / hoa / sha
(END) Dow Jones Newswires
March 17, 2010 08:55 ET (12:55 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
Tags: dow jones newswires, wolfgang reitzle, worldwide economic crisis, project pipeline, future economic development
