展品99.1
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linde报告2024年第二季度业绩
第二季度要点
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| ➢ | 销售额83亿美元，增长1％，基础销售增长3％ |
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| ➢ | 营业利润22亿美元，调整后营业利润24亿美元，增长6％ |
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| ➢ | 营业利润率26.4％；调整后营业利润率29.3％，提高140个基点 |
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| ➢ | 每股收益3.44美元，增长8％；调整后每股收益3.85美元，同比增长8％ |
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| ➢ | 2024年全年调整后每股收益指引为15.40美元至15.60美元，不包括外汇期货，年增长率为9%至11% |
2024年8月2日，linde plc（纳斯达克：LIN）报告了2024年第二季度净利润为166300万美元，每股摊薄盈利为3.44美元，分别较去年增长6%和8%。除linde AG购买会计影响和其他费用外，调整后净利润为185900万美元，较去年同期增加了6%。调整后每股盈利为3.85美元，较去年同期增长了8%。
linde在第二季度的销售额为8亿2670百万美元，较去年同期增长1%。与去年同期相比，由于成交量增长平稳，基础销售额从价格达成上升了3%。
第二季度营业利润为218400万美元。调整后的营业利润为242200万美元，较去年同期增长6％，主要得益于各板块的价格上涨和持续的生产力倡议。调整后的营业利润率为29.3％，比去年同期高出140个基点。
第二季度营运现金流为192900万美元，较去年同期减少10％，主要是由于工程项目预付款项的时间安排。扣除113300万美元的资本支出后，自由现金流为79600万美元。在本季，该公司通过分红派息和股票回购向股东返还210000万美元，扣除发行。
关于财务业绩和业务展望，行政总裁Sanjiv Lamba表示：“尽管面临挑战的宏观环境，linde团队再次交出高质素业绩，每股收益增长8％，投资回报率提高至25.7％，营运利润率扩大了140个基点，达到了29.3％。这展现了我们持续发展综合工业气体模式并开创优质增长机会的能力。”
Lamba继续说道：“展望未来，经济环境依然不确定。然而，我们处于有利地位，能赢得更多优质项目，并持续创造股东价值。”
截至2024年第三季，linde预计调整后的每股稀释收益范围为$3.82至$3.92，较前年同期提高5%至8%，或在排除1%估计的货币不利因素后为6%至9%。
对于2024年整年，公司预计调整后的稀释每股收益区间为15.40至15.60美元，较去年同期增长8%至10%，或排除估计的1%货币逆风后为9%至11%。全年资本支出预计在40亿至45亿美元区间内，以支持增长和维护需求，包括对燃料币项目库存的47亿美元合同销售。
| 第1页，共10页 |
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2024年第二季度各项目结果
美洲销售额为$365500万元，较去年同期增加3%。与2023年第二季度相比，由于价格上涨，致使底层销售增加了4%，而销售量持平。营业利润为$115900万元，占销售额31.7%，较去年同期高出150个基点。
亚太地区(APAC)的销售额为16,5700万美元，较去年同期下降2%，主要受负面货币汇率影响。与2023年第二季度相比，基础销售稳定，因价格和成交量与去年同期持平。营业利润为4,7400万美元，占销售额的28.6%，较上年同期高出60个基点。
欧洲、中东和非洲（欧洲、中东和非洲）销售额为209100万美元，较上年同期下降3%。与2023年第二季度相比，底层销售增长2%，主要由于价格上涨3%，部分抵销1%的容积下降，主要来自金属和矿业最终市场。营业利润为70400万美元，占销售额的33.7%，比上年同期高出450个基点。
linde Engineering的销售额为5,4400万美元，比去年同期增加10％，营业利润为9,600万美元，占销售额的17.6％。该季的订单总额为3,3600万美元，而设备的第三方销售积压为32亿美元。
业绩会
今天上午9点举行linde2024年第二季度业绩电话会议。
| 现场线上会议 | 美国免费拨打号码: 1 888 770 7292 英国免费拨打号码: 0800 358 0970 存取代码: 6877110 |
| 现场网路转播（仅供收听） | https://www.linde.com/investors/financial-reports |
电话会议使用的材料也可以在网站上找到。
关于linde
Linde是一家领先的全球工业气体和工程公司，于2023年的销售额达到330亿美元。我们每天都活出我们的使命，通过提供高质量的解决方案、技术和服务，帮助我们的客户更成功，并助力维持、减碳和保护我们的地球。
该公司提供各种产业市场，如化学品、能源、食品饮料、电子、医疗、制造业、金属和矿业。linde的工业气体和技术应用广泛，包括生产清洁氢气和对能源转型至关重要的碳捕获系统，救生医用氧气以及高纯度和特种气体用于电子产品。linde还提供最先进的气体处理解决方案，以支持客户扩张、提高效率和减少排放。
欲了解有关该公司及其产品与服务的更多资讯，请浏览 www.linde.com
| 第2页，共10页 |
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调整后金额、自由现金流和资本报酬率均为非通用会计原则之衡量标准。请参阅附件，了解调整后金额的非通用会计原则和计算摘要。
附件：摘要非GAAP调和、损益表、资产负债表、现金流量表、分段资讯和附录：非GAAP措施及调和。
*备注：我们提供2024年调整后每股收益（EPS）的预测。这是一个非依照经济合作暨发展组织规定的财务指标，代表从持续营业部门衍生的稀释后每股收益（依照经济合作暨发展组织规定之指标），但不包括我们认为不代表我们基本业务绩效的某些项目的影响，例如成本减少和其他费用，可能出售的资产或其他具有潜在重要性的项目。由于这些项目的时间和程度不确定，我们无法在不合理努力的情况下提供非依照经济合作暨发展组织调整后EPS预测与相应依照经济合作暨发展组织之EPS措施之间差异的对帐。
前瞻性声明
本文件包含1995年《私人证券诉讼改革法案》所指的「前瞻性陈述」。这些前瞻性陈述通常以「预期」、「相信」、「打算」、「估计」、「期望」、「持续」、「应该」、「可能」、「计划」、「预测」、「将」、「潜在」、「预测」等词汇和短语来识别。这些前瞻性陈述基于管理层合理的期望和假设，发表陈述之日起，但牵涉风险和不确定性。这些风险和不确定性包括但不限于：股市整体的表现；全球和国家经济的发展以及其他国际事件和情势，包括贸易争端和关税；外汇和利率的变化；电力、天然气和其他原材料的成本和供应情况；实现价格上涨以抵销成本上升的能力；包括自然灾害、流行病、COVID-19等大流行病和战争行为和恐怖主义在内的灾难性事件；吸引、雇用和留住合格人员的能力；金融会计准则变化的影响；养老金计划负债变化的影响；税务、环保、医疗保健和其他法规以及公司所在司法管辖区的政府法规的影响；调查、诉讼和监管程序的成本和结果；可能出现的不寻常或非经常项目的影响；新产品和应用的持续及市场接受程度；竞争产品和价格的影响；主要客户和行业未来的财务和营运表现；信息技术系统故障、网络中断和数据安全漏洞的影响；以及将新收购整合到业务中的有效性和速度。这些风险和不确定性可能导致未来结果或情况与调整后的预测、估计或其他前瞻性陈述有实质不同。
Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A. Risk Factors in Linde plc’s Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 28, 2024 which should be reviewed carefully. Please consider Linde plc’s forward-looking statements in light of those risks.
| Page 3 of 10 |
LINDE PLC AND SUBSIDIARIES
SUMMARY NON-GAAP RECONCILIATIONS
(UNAUDITED)
The following adjusted amounts are Non-GAAP measures and are intended to supplement investors' understanding of the company's financial statements by providing measures which investors, financial analysts and management use to help evaluate the company's operating performance. Items which the company does not believe to be indicative of ongoing business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. See the "NON GAAP MEASURES AND RECONCILIATIONS" starting on page 9 for additional details relating to the adjustments.
| (Millions of dollars, except per share amounts) |
| Sales |
|
| Operating Profit |
|
| Net Income |
|
| Diluted EPS |
| ||||||||||||||||||||
| Quarter Ended June 30 |
| 2024 |
|
| 2023 |
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| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||||||
| Reported GAAP Amounts |
| $ | 8,267 |
|
| $ | 8,204 |
|
| $ | 2,184 |
|
| $ | 2,011 |
|
| $ | 1,663 |
|
| $ | 1,575 |
|
| $ | 3.44 |
|
| $ | 3.19 |
|
| Other charges (a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 22 |
|
|
| — |
|
|
| (12 | ) |
|
| — |
|
|
| (0.02 | ) |
| Purchase accounting impacts - Linde AG (b) |
|
| — |
|
|
| — |
|
|
| 238 |
|
|
| 253 |
|
|
| 196 |
|
|
| 197 |
|
|
| 0.41 |
|
|
| 0.40 |
|
| Total adjustments |
|
| — |
|
|
| — |
|
|
| 238 |
|
|
| 275 |
|
|
| 196 |
|
|
| 185 |
|
|
| 0.41 |
|
|
| 0.38 |
|
| Adjusted amounts |
| $ | 8,267 |
|
| $ | 8,204 |
|
| $ | 2,422 |
|
| $ | 2,286 |
|
| $ | 1,859 |
|
| $ | 1,760 |
|
| $ | 3.85 |
|
| $ | 3.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Millions of dollars, except per share amounts) |
| Sales |
|
| Operating Profit |
|
|
| Net Income | Diluted EPS |
| |||||||||||||||||||||
| Year to Date June 30 |
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||||||
| Reported GAAP Amounts |
| $ | 16,367 |
|
| $ | 16,397 |
|
| $ | 4,279 |
|
| $ | 3,944 |
|
| $ | 3,290 |
|
| $ | 3,091 |
|
| $ | 6.79 |
|
| $ | 6.25 |
|
| Other charges (a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 40 |
|
|
| (5 | ) |
|
| (39 | ) |
|
| (0.01 | ) |
|
| (0.08 | ) |
| Purchase accounting impacts - Linde AG (b) |
|
| — |
|
|
| — |
|
|
| 484 |
|
|
| 508 |
|
|
| 395 |
|
|
| 401 |
|
|
| 0.82 |
|
|
| 0.81 |
|
| Total adjustments |
|
| — |
|
|
| — |
|
|
| 484 |
|
|
| 548 |
|
|
| 390 |
|
|
| 362 |
|
|
| 0.81 |
|
|
| 0.73 |
|
| Adjusted amounts |
| $ | 16,367 |
|
| $ | 16,397 |
|
| $ | 4,763 |
|
| $ | 4,492 |
|
| $ | 3,680 |
|
| $ | 3,453 |
|
| $ | 7.60 |
|
| $ | 6.98 |
|
(a) 2023 year to date charges related primarily to severance and delist charges, which were offset by a tax settlement.
(b) To adjust for purchase accounting impacts related to the merger.
| Page 4 of 10 |
LINDE PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
|
|
| Quarter Ended June 30, |
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| Year To Date June 30, |
| ||||||||||
| (Millions of dollars, except per share data) |
| 2024 |
|
| 2023 |
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| 2024 |
|
| 2023 |
| ||||
| Sales |
| $ | 8,267 |
|
| $ | 8,204 |
|
| $ | 16,367 |
|
| $ | 16,397 |
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| Cost of sales |
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| 4,251 |
|
|
| 4,316 |
|
|
| 8,467 |
|
|
| 8,747 |
|
| Selling, general and administrative |
|
| 840 |
|
|
| 833 |
|
|
| 1,700 |
|
|
| 1,655 |
|
| Depreciation and amortization |
|
| 958 |
|
|
| 960 |
|
|
| 1,907 |
|
|
| 1,908 |
|
| Research and development |
|
| 36 |
|
|
| 35 |
|
|
| 74 |
|
|
| 71 |
|
| Other charges |
|
| — |
|
|
| 22 |
|
|
| — |
|
|
| 40 |
|
| Other income (expense) - net |
|
| 2 |
|
|
| (27 | ) |
|
| 60 |
|
|
| (32 | ) |
| Operating Profit |
|
| 2,184 |
|
|
| 2,011 |
|
|
| 4,279 |
|
|
| 3,944 |
|
| Interest expense - net |
|
| 70 |
|
|
| 52 |
|
|
| 135 |
|
|
| 89 |
|
| Net pension and OPEB cost (benefit), excluding service cost |
|
| (49 | ) |
|
| (45 | ) |
|
| (99 | ) |
|
| (90 | ) |
| Income Before Income Taxes and Equity Investments |
|
| 2,163 |
|
|
| 2,004 |
|
|
| 4,243 |
|
|
| 3,945 |
|
| Income taxes |
|
| 508 |
|
|
| 438 |
|
|
| 971 |
|
|
| 868 |
|
| Income Before Equity Investments |
|
| 1,655 |
|
|
| 1,566 |
|
|
| 3,272 |
|
|
| 3,077 |
|
| Income from equity investments |
|
| 45 |
|
|
| 46 |
|
|
| 93 |
|
|
| 87 |
|
| Income (Including Noncontrolling Interests) |
|
| 1,700 |
|
|
| 1,612 |
|
|
| 3,365 |
|
|
| 3,164 |
|
| Less: noncontrolling interests |
|
| (37 | ) |
|
| (37 | ) |
|
| (75 | ) |
|
| (73 | ) |
| Net Income – Linde plc |
| $ | 1,663 |
|
| $ | 1,575 |
|
| $ | 3,290 |
|
| $ | 3,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per Share Data – Linde plc Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
| $ | 3.46 |
|
| $ | 3.22 |
|
| $ | 6.84 |
|
| $ | 6.30 |
|
| Diluted Earnings per share |
| $ | 3.44 |
|
| $ | 3.19 |
|
| $ | 6.79 |
|
| $ | 6.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash dividends per share |
| $ | 1.39 |
|
| $ | 1.275 |
|
| $ | 2.78 |
|
| $ | 2.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average Shares Outstanding (000’s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic shares outstanding (000's) |
|
| 479,973 |
|
|
| 489,618 |
|
|
| 480,943 |
|
|
| 490,727 |
|
| Diluted shares outstanding (000's) |
|
| 483,177 |
|
|
| 493,549 |
|
|
| 484,366 |
|
|
| 494,685 |
|
Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP.
| Page 5 of 10 |
LINDE PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
|
|
| June 30, |
|
| December 31, |
| ||
| (Millions of dollars) |
| 2024 |
|
| 2023 |
| ||
| Assets |
|
|
|
|
|
| ||
| Cash and cash equivalents |
| $ | 4,626 |
|
| $ | 4,664 |
|
| Accounts receivable - net |
|
| 5,001 |
|
|
| 4,718 |
|
| Contract assets |
|
| 226 |
|
|
| 196 |
|
| Inventories |
|
| 2,094 |
|
|
| 2,115 |
|
| Prepaid and other current assets |
|
| 896 |
|
|
| 927 |
|
| Total Current Assets |
|
| 12,843 |
|
|
| 12,620 |
|
| Property, plant and equipment - net |
|
| 24,575 |
|
|
| 24,552 |
|
| Goodwill |
|
| 26,365 |
|
|
| 26,751 |
|
| Other intangibles - net |
|
| 11,851 |
|
|
| 12,399 |
|
| Other long-term assets |
|
| 4,581 |
|
|
| 4,489 |
|
| Total Assets |
| $ | 80,215 |
|
| $ | 80,811 |
|
| Liabilities and Equity |
|
|
|
|
|
|
|
|
| Accounts payable |
| $ | 2,859 |
|
| $ | 3,020 |
|
| Short-term debt |
|
| 3,326 |
|
|
| 4,713 |
|
| Current portion of long-term debt |
|
| 1,261 |
|
|
| 1,263 |
|
| Contract liabilities |
|
| 1,767 |
|
|
| 1,901 |
|
| Other current liabilities |
|
| 4,291 |
|
|
| 4,820 |
|
| Total Current Liabilities |
|
| 13,504 |
|
|
| 15,717 |
|
| Long-term debt |
|
| 16,931 |
|
|
| 13,397 |
|
| Other long-term liabilities |
|
| 10,229 |
|
|
| 10,602 |
|
| Total Liabilities |
| $ | 40,664 |
|
| $ | 39,716 |
|
| Redeemable noncontrolling interests |
|
| 13 |
|
|
| 13 |
|
| Linde plc Shareholders’ Equity |
|
|
|
|
|
|
|
|
| Ordinary shares |
|
| 1 |
|
|
| 1 |
|
| Additional paid-in capital |
|
| 39,560 |
|
|
| 39,812 |
|
| Retained earnings |
|
| 10,721 |
|
|
| 8,845 |
|
| Accumulated other comprehensive income (loss) |
|
| (6,794 | ) |
|
| (5,805 | ) |
| Less: Treasury shares, at cost |
|
| (5,309 | ) |
|
| (3,133 | ) |
| Total Linde plc Shareholders' Equity |
|
| 38,179 |
|
|
| 39,720 |
|
| Noncontrolling interests |
|
| 1,359 |
|
|
| 1,362 |
|
| Total Equity |
| $ | 39,538 |
|
| $ | 41,082 |
|
| Total Liabilities and Equity |
| $ | 80,215 |
|
| $ | 80,811 |
|
| Page 6 of 10 |
LINDE PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
|
|
| Quarter Ended June 30, |
|
| Year to Date June 30, |
| ||||||||||
| (Millions of dollars) |
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
| Operations |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Net income - Linde plc |
| $ | 1,663 |
|
| $ | 1,575 |
|
| $ | 3,290 |
|
| $ | 3,091 |
|
| Add: noncontrolling interests |
|
| 37 |
|
|
| 37 |
|
|
| 75 |
|
|
| 73 |
|
| Net income (including noncontrolling interests) |
|
| 1,700 |
|
|
| 1,612 |
|
|
| 3,365 |
|
|
| 3,164 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other charges, net of payments (a) |
|
| (20 | ) |
|
| — |
|
|
| (75 | ) |
|
| (61 | ) |
| Depreciation and amortization |
|
| 958 |
|
|
| 960 |
|
|
| 1,907 |
|
|
| 1,908 |
|
| Accounts receivable |
|
| (61 | ) |
|
| (44 | ) |
|
| (422 | ) |
|
| (175 | ) |
| Contract assets and liabilities, net |
|
| (139 | ) |
|
| 183 |
|
|
| (189 | ) |
|
| 117 |
|
| Inventory |
|
| 4 |
|
|
| (26 | ) |
|
| (23 | ) |
|
| (85 | ) |
| Payables and accruals |
|
| (328 | ) |
|
| (394 | ) |
|
| (393 | ) |
|
| (458 | ) |
| Pension contributions |
|
| (13 | ) |
|
| (15 | ) |
|
| (24 | ) |
|
| (25 | ) |
| Deferred income taxes and other |
|
| (172 | ) |
|
| (126 | ) |
|
| (263 | ) |
|
| (327 | ) |
| Net cash provided by (used for) operating activities |
|
| 1,929 |
|
|
| 2,150 |
|
|
| 3,883 |
|
|
| 4,058 |
|
| Investing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures |
|
| (1,133 | ) |
|
| (859 | ) |
|
| (2,181 | ) |
|
| (1,688 | ) |
| Acquisitions, net of cash acquired |
|
| (152 | ) |
|
| (26 | ) |
|
| (152 | ) |
|
| (834 | ) |
| Divestitures, net of cash divested and asset sales |
|
| 15 |
|
|
| 21 |
|
|
| 22 |
|
|
| 24 |
|
| Net cash provided by (used for) investing activities |
|
| (1,270 | ) |
|
| (864 | ) |
|
| (2,311 | ) |
|
| (2,498 | ) |
| Financing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debt increase (decrease) - net |
|
| 1,320 |
|
|
| (1,359 | ) |
|
| 2,535 |
|
|
| (642 | ) |
| Issuances of ordinary shares |
|
| 5 |
|
|
| 8 |
|
|
| 21 |
|
|
| 21 |
|
| Purchases of ordinary shares |
|
| (1,440 | ) |
|
| (908 | ) |
|
| (2,481 | ) |
|
| (1,767 | ) |
| Cash dividends - Linde plc shareholders |
|
| (665 | ) |
|
| (623 | ) |
|
| (1,334 | ) |
|
| (1,246 | ) |
| Noncontrolling interest transactions and other |
|
| (28 | ) |
|
| (10 | ) |
|
| (217 | ) |
|
| (22 | ) |
| Net cash provided by (used for) financing activities |
|
| (808 | ) |
|
| (2,892 | ) |
|
| (1,476 | ) |
|
| (3,656 | ) |
| Effect of exchange rate changes on cash and cash equivalents |
|
| (73 | ) |
|
| 1 |
|
|
| (134 | ) |
|
| 17 |
|
| Change in cash and cash equivalents |
|
| (222 | ) |
|
| (1,605 | ) |
|
| (38 | ) |
|
| (2,079 | ) |
| Cash and cash equivalents, beginning-of-period |
|
| 4,848 |
|
|
| 4,962 |
|
|
| 4,664 |
|
|
| 5,436 |
|
| Cash and cash equivalents, end-of-period |
| $ | 4,626 |
|
| $ | 3,357 |
|
| $ | 4,626 |
|
| $ | 3,357 |
|
(a) There were no other charges for the quarter and six months ended June 30, 2024 and other charges of $22 million and $40 million for the respective 2023 periods. Related cash outflows were $20 million and $22 million for the quarters ended June 30, 2024 and 2023, respectively, and $75 million and $101 million for the six months ended June 30, 2024 and 2023, respectively.
| Page 7 of 10 |
LINDE PLC AND SUBSIDIARIES
SEGMENT INFORMATION
(UNAUDITED)
|
|
| Quarter Ended June 30, |
|
| Year to Date June 30, |
| ||||||||||
| (Millions of dollars) |
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
| Sales |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Americas |
| $ | 3,655 |
|
| $ | 3,541 |
|
| $ | 7,215 |
|
| $ | 7,092 |
|
| EMEA |
|
| 2,091 |
|
|
| 2,160 |
|
|
| 4,182 |
|
|
| 4,337 |
|
| APAC |
|
| 1,657 |
|
|
| 1,683 |
|
|
| 3,248 |
|
|
| 3,281 |
|
| Engineering |
|
| 544 |
|
|
| 495 |
|
|
| 1,083 |
|
|
| 1,035 |
|
| Other |
|
| 320 |
|
|
| 325 |
|
|
| 639 |
|
|
| 652 |
|
| Total segment sales |
| $ | 8,267 |
|
| $ | 8,204 |
|
| $ | 16,367 |
|
| $ | 16,397 |
|
| Operating Profit |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Americas |
| $ | 1,159 |
|
| $ | 1,070 |
|
| $ | 2,247 |
|
| $ | 2,095 |
|
| EMEA |
|
| 704 |
|
|
| 630 |
|
|
| 1,391 |
|
|
| 1,237 |
|
| APAC |
|
| 474 |
|
|
| 472 |
|
|
| 921 |
|
|
| 895 |
|
| Engineering |
|
| 96 |
|
|
| 107 |
|
|
| 196 |
|
|
| 256 |
|
| Other |
|
| (11 | ) |
|
| 7 |
|
|
| 8 |
|
|
| 9 |
|
| Segment operating profit |
|
| 2,422 |
|
|
| 2,286 |
|
|
| 4,763 |
|
|
| 4,492 |
|
| Other charges |
|
| — |
|
|
| (22 | ) |
|
| — |
|
|
| (40 | ) |
| Purchase accounting impacts - Linde AG |
|
| (238 | ) |
|
| (253 | ) |
|
| (484 | ) |
|
| (508 | ) |
| Total operating profit |
| $ | 2,184 |
|
| $ | 2,011 |
|
| $ | 4,279 |
|
| $ | 3,944 |
|
| Page 8 of 10 |
LINDE PLC AND SUBSIDIARIES
APPENDIX
NON-GAAP MEASURES AND RECONCILIATIONS
(UNAUDITED)
The following Non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management use to help evaluate the company’s operating performance and liquidity. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures.
| 2024 |
|
| 2023 |
| ||||||||||||||||||||||||||||
| (Millions of dollars) |
| Year to Date June 30, |
|
| Q2 |
|
| Q1 |
|
| Year to Date June 30, |
|
| Q4 |
|
| Q3 |
|
| Q2 |
|
| Q1 |
| ||||||||
| Adjusted Operating Profit and Operating Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Reported operating profit |
| $ | 4,279 |
|
| $ | 2,184 |
|
| $ | 2,095 |
|
| $ | 3,944 |
|
| $ | 2,028 |
|
| $ | 2,052 |
|
| $ | 2,011 |
|
| $ | 1,933 |
|
| Add: Other charges (a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 40 |
|
|
| (2 | ) |
|
| 2 |
|
|
| 22 |
|
|
| 18 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 484 |
|
|
| 238 |
|
|
| 246 |
|
|
| 508 |
|
|
| 246 |
|
|
| 252 |
|
|
| 253 |
|
|
| 255 |
|
| Total adjustments |
|
| 484 |
|
|
| 238 |
|
|
| 246 |
|
|
| 548 |
|
|
| 244 |
|
|
| 254 |
|
|
| 275 |
|
|
| 273 |
|
| Adjusted operating profit |
| $ | 4,763 |
|
| $ | 2,422 |
|
| $ | 2,341 |
|
| $ | 4,492 |
|
| $ | 2,272 |
|
| $ | 2,306 |
|
| $ | 2,286 |
|
| $ | 2,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported percentage change |
|
| 8 | % |
|
| 9 | % |
|
| 8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted percentage change |
|
| 6 | % |
|
| 6 | % |
|
| 6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported sales |
| $ | 16,367 |
|
| $ | 8,267 |
|
| $ | 8,100 |
|
| $ | 16,397 |
|
| $ | 8,302 |
|
| $ | 8,155 |
|
| $ | 8,204 |
|
| $ | 8,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported operating margin |
|
| 26.1 | % |
|
| 26.4 | % |
|
| 25.9 | % |
|
| 24.1 | % |
|
| 24.4 | % |
|
| 25.2 | % |
|
| 24.5 | % |
|
| 23.6 | % |
| Adjusted operating margin |
|
| 29.1 | % |
|
| 29.3 | % |
|
| 28.9 | % |
|
| 27.4 | % |
|
| 27.4 | % |
|
| 28.3 | % |
|
| 27.9 | % |
|
| 26.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported depreciation and amortization |
| $ | 1,907 |
|
| $ | 958 |
|
| $ | 949 |
|
| $ | 1,908 |
|
| $ | 949 |
|
| $ | 959 |
|
| $ | 960 |
|
| $ | 948 |
|
| Less: Purchase accounting impacts - Linde AG (c) |
|
| (477 | ) |
|
| (237 | ) |
|
| (240 | ) |
|
| (501 | ) |
|
| (241 | ) |
|
| (249 | ) |
|
| (251 | ) |
|
| (250 | ) |
| Adjusted depreciation and amortization |
| $ | 1,430 |
|
| $ | 721 |
|
| $ | 709 |
|
| $ | 1,407 |
|
| $ | 708 |
|
| $ | 710 |
|
| $ | 709 |
|
| $ | 698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Other Income (Expense) - net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported Other Income (Expense) - net |
| $ | 60 |
|
| $ | 2 |
|
| $ | 58 |
|
| $ | (32 | ) |
| $ | (25 | ) |
| $ | 16 |
|
| $ | (27 | ) |
| $ | (5 | ) |
| Add: Purchase accounting impacts - Linde AG (c) |
|
| (7 | ) |
|
| (1 | ) |
|
| (6 | ) |
|
| (7 | ) |
|
| (5 | ) |
|
| (3 | ) |
|
| (2 | ) |
|
| (5 | ) |
| Adjusted Other Income (Expense) - net |
| $ | 67 |
|
| $ | 3 |
|
| $ | 64 |
|
| $ | (25 | ) |
| $ | (20 | ) |
| $ | 19 |
|
| $ | (25 | ) |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported net pension and OPEB cost (benefit), excluding service cost |
| $ | (99 | ) |
| $ | (49 | ) |
| $ | (50 | ) |
| $ | (90 | ) |
| $ | (39 | ) |
| $ | (35 | ) |
| $ | (45 | ) |
| $ | (45 | ) |
| Add: Pension settlement charges |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (4 | ) |
|
| (12 | ) |
|
| — |
|
|
| — |
|
| Adjusted Net Pension and OPEB cost (benefit), excluding service costs |
| $ | (99 | ) |
| $ | (49 | ) |
| $ | (50 | ) |
| $ | (90 | ) |
| $ | (43 | ) |
| $ | (47 | ) |
| $ | (45 | ) |
| $ | (45 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Interest Expense - Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported interest expense - net |
| $ | 135 |
|
| $ | 70 |
|
| $ | 65 |
|
| $ | 89 |
|
| $ | 71 |
|
| $ | 40 |
|
| $ | 52 |
|
| $ | 37 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 3 |
|
|
| 1 |
|
|
| 2 |
|
|
| 13 |
|
|
| 1 |
|
|
| 2 |
|
|
| 4 |
|
|
| 9 |
|
| Adjusted interest expense - net |
| $ | 138 |
|
| $ | 71 |
|
| $ | 67 |
|
| $ | 102 |
|
| $ | 72 |
|
| $ | 42 |
|
| $ | 56 |
|
| $ | 46 |
|
| Page 9 of 10 |
| 2024 |
|
| 2023 |
| ||||||||||||||||||||||||||||
| (Millions of dollars) |
| Year to Date June 30, |
|
| Q2 |
|
| Q1 |
|
| Year to Date June 30, |
|
| Q4 |
|
| Q3 |
|
| Q2 |
|
| Q1 |
| ||||||||
| Adjusted Income Taxes (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Reported income taxes |
| $ | 971 |
|
| $ | 508 |
|
| $ | 463 |
|
| $ | 868 |
|
| $ | 459 |
|
| $ | 487 |
|
| $ | 438 |
|
| $ | 430 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 116 |
|
|
| 56 |
|
|
| 60 |
|
|
| 124 |
|
|
| 49 |
|
|
| 59 |
|
|
| 67 |
|
|
| 57 |
|
| Add: Pension settlement charges |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1 |
|
|
| 2 |
|
|
| — |
|
|
| — |
|
| Add: Other charges (a) |
|
| 5 |
|
|
| — |
|
|
| 5 |
|
|
| 79 |
|
|
| 2 |
|
|
| — |
|
|
| 34 |
|
|
| 45 |
|
| Total adjustments |
|
| 121 |
|
|
| 56 |
|
|
| 65 |
|
|
| 203 |
|
|
| 52 |
|
|
| 61 |
|
|
| 101 |
|
|
| 102 |
|
| Adjusted income taxes |
| $ | 1,092 |
|
| $ | 564 |
|
| $ | 528 |
|
| $ | 1,071 |
|
| $ | 511 |
|
| $ | 548 |
|
| $ | 539 |
|
| $ | 532 |
|
| Adjusted Effective Tax Rate (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported income before income taxes and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| investments |
| $ | 4,243 |
|
| $ | 2,163 |
|
| $ | 2,080 |
|
| $ | 3,945 |
|
| $ | 1,996 |
|
| $ | 2,047 |
|
| $ | 2,004 |
|
| $ | 1,941 |
|
| Add: Pension settlement charge |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 4 |
|
|
| 12 |
|
|
| — |
|
|
| — |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 481 |
|
|
| 237 |
|
|
| 244 |
|
|
| 495 |
|
|
| 245 |
|
|
| 250 |
|
|
| 249 |
|
|
| 246 |
|
| Add: Other charges (a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 40 |
|
|
| (2 | ) |
|
| 2 |
|
|
| 22 |
|
|
| 18 |
|
| Total adjustments |
|
| 481 |
|
|
| 237 |
|
|
| 244 |
|
|
| 535 |
|
|
| 247 |
|
|
| 264 |
|
|
| 271 |
|
|
| 264 |
|
| Adjusted income before income taxes and equity investments |
| $ | 4,724 |
|
| $ | 2,400 |
|
| $ | 2,324 |
|
| $ | 4,480 |
|
| $ | 2,243 |
|
| $ | 2,311 |
|
| $ | 2,275 |
|
| $ | 2,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported Income taxes |
| $ | 971 |
|
| $ | 508 |
|
| $ | 463 |
|
| $ | 868 |
|
| $ | 459 |
|
| $ | 487 |
|
| $ | 438 |
|
| $ | 430 |
|
| Reported effective tax rate |
|
| 22.9 | % |
|
| 23.5 | % |
|
| 22.3 | % |
|
| 22.0 | % |
|
| 23.0 | % |
|
| 23.8 | % |
|
| 21.9 | % |
|
| 22.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted income taxes |
| $ | 1,092 |
|
| $ | 564 |
|
| $ | 528 |
|
| $ | 1,071 |
|
| $ | 511 |
|
| $ | 548 |
|
| $ | 539 |
|
| $ | 532 |
|
| Adjusted effective tax rate |
|
| 23.1 | % |
|
| 23.5 | % |
|
| 22.7 | % |
|
| 23.9 | % |
|
| 22.8 | % |
|
| 23.7 | % |
|
| 23.7 | % |
|
| 24.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from Equity Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported income from equity investments |
| $ | 93 |
|
| $ | 45 |
|
| $ | 48 |
|
| $ | 87 |
|
| $ | 39 |
|
| $ | 41 |
|
| $ | 46 |
|
| $ | 41 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 36 |
|
|
| 18 |
|
|
| 18 |
|
|
| 36 |
|
|
| 18 |
|
|
| 18 |
|
|
| 18 |
|
|
| 18 |
|
| Adjusted income from equity investments |
| $ | 129 |
|
| $ | 63 |
|
| $ | 66 |
|
| $ | 123 |
|
| $ | 57 |
|
| $ | 59 |
|
| $ | 64 |
|
| $ | 59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Noncontrolling Interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported noncontrolling interests |
| $ | (75 | ) |
| $ | (37 | ) |
| $ | (38 | ) |
| $ | (73 | ) |
| $ | (33 | ) |
| $ | (36 | ) |
| $ | (37 | ) |
| $ | (36 | ) |
| Add: Purchase accounting impacts - Linde AG (c) |
|
| (6 | ) |
|
| (3 | ) |
|
| (3 | ) |
|
| (6 | ) |
|
| (3 | ) |
|
| (3 | ) |
|
| (3 | ) |
|
| (3 | ) |
| Adjusted noncontrolling interests |
| $ | (81 | ) |
| $ | (40 | ) |
| $ | (41 | ) |
| $ | (79 | ) |
| $ | (36 | ) |
| $ | (39 | ) |
| $ | (40 | ) |
| $ | (39 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income - Linde plc (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported net income |
| $ | 3,290 |
|
| $ | 1,663 |
|
| $ | 1,627 |
|
| $ | 3,091 |
|
| $ | 1,543 |
|
| $ | 1,565 |
|
| $ | 1,575 |
|
| $ | 1,516 |
|
| Add: Pension settlement charge |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 3 |
|
|
| 10 |
|
|
| — |
|
|
| — |
|
| Add: Other charges (a) |
|
| (5 | ) |
|
| — |
|
|
| (5 | ) |
|
| (39 | ) |
|
| (4 | ) |
|
| 2 |
|
|
| (12 | ) |
|
| (27 | ) |
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 395 |
|
|
| 196 |
|
|
| 199 |
|
|
| 401 |
|
|
| 211 |
|
|
| 206 |
|
|
| 197 |
|
|
| 204 |
|
| Total adjustments |
|
| 390 |
|
|
| 196 |
|
|
| 194 |
|
|
| 362 |
|
|
| 210 |
|
|
| 218 |
|
|
| 185 |
|
|
| 177 |
|
| Adjusted net income - Linde plc |
| $ | 3,680 |
|
| $ | 1,859 |
|
| $ | 1,821 |
|
| $ | 3,453 |
|
| $ | 1,753 |
|
| $ | 1,783 |
|
| $ | 1,760 |
|
| $ | 1,693 |
|
| Page 9 of 10 cont'd |
|
|
| 2024 |
|
| 2023 |
| ||||||||||||||||||||||||||
| (Millions of dollars, except per share data) |
| Year to Date June 30, |
|
| Q2 |
|
| Q1 |
|
| Year to Date June 30, |
|
| Q4 |
|
| Q3 |
|
| Q2 |
|
| Q1 |
| ||||||||
| Adjusted Diluted EPS (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Reported diluted EPS |
| $ | 6.79 |
|
| $ | 3.44 |
|
| $ | 3.35 |
|
| $ | 6.25 |
|
| $ | 3.16 |
|
| $ | 3.19 |
|
| $ | 3.19 |
|
| $ | 3.06 |
|
| Add: Pension settlement charge |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 0.01 |
|
|
| 0.02 |
|
|
| — |
|
|
| — |
|
| Add: Other charges (a) |
|
| (0.01 | ) |
|
| — |
|
|
| (0.01 | ) |
|
| (0.08 | ) |
|
| (0.01 | ) |
|
| — |
|
|
| (0.02 | ) |
|
| (0.05 | ) |
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 0.82 |
|
|
| 0.41 |
|
|
| 0.41 |
|
|
| 0.81 |
|
|
| 0.43 |
|
|
| 0.42 |
|
|
| 0.40 |
|
|
| 0.41 |
|
| Total adjustments |
|
| 0.81 |
|
|
| 0.41 |
|
|
| 0.40 |
|
|
| 0.73 |
|
|
| 0.43 |
|
|
| 0.44 |
|
|
| 0.38 |
|
|
| 0.36 |
|
| Adjusted diluted EPS |
| $ | 7.60 |
|
| $ | 3.85 |
|
| $ | 3.75 |
|
| $ | 6.98 |
|
| $ | 3.59 |
|
| $ | 3.63 |
|
| $ | 3.57 |
|
| $ | 3.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported percentage change |
|
| 9 | % |
|
| 8 | % |
|
| 9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted percentage change |
|
| 9 | % |
|
| 8 | % |
|
| 10 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Third Quarter 2024 | Full Year 2024 |
| ||||||||||||
| Adjusted Diluted EPS Guidance (d) |
| Low End High End | Low End High End |
| ||||||||||||
| 2024 Adjusted Guidance |
| $ | 3.82 |
|
| $ | 3.92 |
|
| $ | 15.40 |
|
| $ | 15.60 |
|
| Adjusted percentage changes versus 2023 adjusted diluted EPS |
|
| 5 | % |
|
| 8 | % |
|
| 8 | % |
|
| 10 | % |
| Add: Estimated currency headwind/(tailwind) |
|
| 1 | % |
|
| 1 | % |
|
| 1 | % |
|
| 1 | % |
| Adjusted percentage change excluding currency |
|
| 6 | % |
|
| 9 | % |
|
| 9 | % |
|
| 11 | % |
| Adjusted EBITDA and % of Sales |
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||
| Net Income - Linde plc |
| $ | 3,290 |
|
| $ | 1,663 |
|
| $ | 1,627 |
|
| $ | 3,091 |
|
| $ | 1,543 |
|
| $ | 1,565 |
|
| $ | 1,575 |
|
| $ | 1,516 |
|
| Add: Noncontrolling interests |
|
| 75 |
|
|
| 37 |
|
|
| 38 |
|
|
| 73 |
|
|
| 33 |
|
|
| 36 |
|
|
| 37 |
|
|
| 36 |
|
| Add: Net pension and OPEB cost (benefit), excluding service cost |
|
| (99 | ) |
|
| (49 | ) |
|
| (50 | ) |
|
| (90 | ) |
|
| (39 | ) |
|
| (35 | ) |
|
| (45 | ) |
|
| (45 | ) |
| Add: Interest expense |
|
| 135 |
|
|
| 70 |
|
|
| 65 |
|
|
| 89 |
|
|
| 71 |
|
|
| 40 |
|
|
| 52 |
|
|
| 37 |
|
| Add: Income taxes |
|
| 971 |
|
|
| 508 |
|
|
| 463 |
|
|
| 868 |
|
|
| 459 |
|
|
| 487 |
|
|
| 438 |
|
|
| 430 |
|
| Add: Depreciation and amortization |
|
| 1,907 |
|
|
| 958 |
|
|
| 949 |
|
|
| 1,908 |
|
|
| 949 |
|
|
| 959 |
|
|
| 960 |
|
|
| 948 |
|
| EBITDA |
|
| 6,279 |
|
|
| 3,187 |
|
|
| 3,092 |
|
|
| 5,939 |
|
|
| 3,016 |
|
|
| 3,052 |
|
|
| 3,017 |
|
|
| 2,922 |
|
| Add: Other charges (a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 40 |
|
|
| (2 | ) |
|
| 2 |
|
|
| 22 |
|
|
| 18 |
|
| Add: Purchase accounting impacts - Linde AG (c) |
|
| 43 |
|
|
| 19 |
|
|
| 24 |
|
|
| 43 |
|
|
| 23 |
|
|
| 20 |
|
|
| 20 |
|
|
| 23 |
|
| Total adjustments |
|
| 43 |
|
|
| 19 |
|
|
| 24 |
|
|
| 83 |
|
|
| 21 |
|
|
| 22 |
|
|
| 42 |
|
|
| 41 |
|
| Adjusted EBITDA |
| $ | 6,322 |
|
| $ | 3,206 |
|
| $ | 3,116 |
|
| $ | 6,022 |
|
| $ | 3,037 |
|
| $ | 3,074 |
|
| $ | 3,059 |
|
| $ | 2,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported sales |
| $ | 16,367 |
|
| $ | 8,267 |
|
| $ | 8,100 |
|
| $ | 16,397 |
|
| $ | 8,302 |
|
| $ | 8,155 |
|
| $ | 8,204 |
|
| $ | 8,193 |
|
| % of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
| 38.4 | % |
|
| 38.6 | % |
|
| 38.2 | % |
|
| 36.2 | % |
|
| 36.3 | % |
|
| 37.4 | % |
|
| 36.8 | % |
|
| 35.7 | % |
| Adjusted EBITDA as a % of Sales |
|
| 38.6 | % |
|
| 38.8 | % |
|
| 38.5 | % |
|
| 36.7 | % |
|
| 36.6 | % |
|
| 37.7 | % |
|
| 37.3 | % |
|
| 36.2 | % |
(a) The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.
(b) Net of income taxes which are shown separately in “Adjusted Income Taxes and Effective Tax Rate”.
(c) The company believes that its non-GAAP measures excluding Purchase accounting impacts - Linde AG are useful to investors because: (i) the 2018 business combination was a merger of equals in an all-stock merger transaction, with no cash consideration, (ii)
| Page 9 of 10 cont'd |
the company is managed on a geographic basis and the results of certain geographies are more heavily impacted by purchase accounting than others, causing results that are not comparable at the reportable segment level, therefore, the impacts of purchasing accounting adjustments to each segment vary and are not comparable within the company and when compared to other companies in similar regions, (iii) business management is evaluated and variable compensation is determined based on results excluding purchase accounting impacts, and; (iv) it is important to investors and analysts to understand the purchase accounting impacts to the financial statements.
A summary of each of the adjustments made for Purchase accounting impacts - Linde AG are as follows:
Adjusted Operating Profit and Margin: The purchase accounting adjustments for the periods presented relate primarily to depreciation and amortization related to the fair value step up of fixed assets and intangible assets (primarily customer related) acquired in the merger and the allocation of fair value step-up for ongoing Linde AG asset disposals (reflected in Other Income/ (Expense)).
Adjusted Interest Expense - Net: Relates to the amortization of the fair value of debt acquired in the merger.
Adjusted Income Taxes and Effective Tax Rate: Relates to the current and deferred income tax impact on the adjustments discussed above. The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.
Adjusted Income from Equity Investments: Represents the amortization of increased fair value on equity investments related to depreciable and amortizable assets.
Adjusted Noncontrolling Interests: Represents the noncontrolling interests’ ownership portion of the adjustments described above determined on an entity by entity basis.
(d) We are providing adjusted earnings per share (“EPS”) guidance for 2024. This is a non-GAAP financial measure that represents diluted earnings per share (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges and the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.
| Page 9 of 10 cont'd |
LINDE PLC AND SUBSIDIARIES
APPENDIX
NON-GAAP MEASURES AND RECONCILIATIONS
(UNAUDITED)
|
|
| 2024 |
|
| 2023 | ||||||||||||||
| (Millions of dollars) |
| Q2 |
|
| Q1 |
|
| Q4 |
|
| Q3 |
| Q2 |
| Q1 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate the ability of a company to pursue opportunities that enhance shareholder value. FCF equals cash flow from operations less capital expenditures.
| Operating Cash Flow |
| $ | 1,929 |
|
| $ | 1,954 |
|
| $ | 2,727 |
|
| $ | 2,520 |
|
| $ | 2,150 |
|
| $ | 1,908 |
|
| Less: Capital Expenditures |
|
| (1,133 | ) |
|
| (1,048 | ) |
|
| (1,151 | ) |
|
| (948 | ) |
|
| (859 | ) |
|
| (829 | ) |
| Free Cash Flow |
| $ | 796 |
|
| $ | 906 |
|
| $ | 1,576 |
|
| $ | 1,572 |
|
| $ | 1,291 |
|
| $ | 1,079 |
|
Net Debt - Net debt is a financial liquidity metric used by investors, financial analysts and management to evaluate the ability of a company to repay its debt and is calculated as total debt (excluding purchase accounting impacts) less liquid assets.
| Debt |
| $ | 21,518 |
|
| $ | 20,319 |
|
| $ | 19,373 |
|
| $ | 18,003 |
|
| $ | 17,490 |
|
| $ | 18,777 |
|
| Less: Cash and cash equivalents |
|
| (4,626 | ) |
|
| (4,848 | ) |
|
| (4,664 | ) |
|
| (3,894 | ) |
|
| (3,357 | ) |
|
| (4,962 | ) |
| Net debt |
|
| 16,892 |
|
|
| 15,471 |
|
|
| 14,709 |
|
|
| 14,109 |
|
|
| 14,133 |
|
|
| 13,815 |
|
| Less: Purchase accounting impacts - Linde AG |
|
| (4 | ) |
|
| (5 | ) |
|
| (7 | ) |
|
| (8 | ) |
|
| (10 | ) |
|
| (13 | ) |
| Adjusted net debt |
| $ | 16,888 |
|
| $ | 15,466 |
|
| $ | 14,702 |
|
| $ | 14,101 |
|
| $ | 14,123 |
|
| $ | 13,802 |
|
After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC) - After-tax return on capital is a measure used by investors, financial analysts and management to evaluate the return on net assets employed in the business. ROC measures the after- tax operating profit that the company was able to generate with the investments made by all parties in the business (debt, noncontrolling interests and Linde plc Shareholders’ Equity).
| Reported net income - Linde plc |
| $ | 1,663 |
|
| $ | 1,627 |
|
| $ | 1,543 |
|
| $ | 1,565 |
|
| $ | 1,575 |
|
| $ | 1,516 |
|
| Add: noncontrolling interests |
|
| 37 |
|
|
| 38 |
|
|
| 33 |
|
|
| 36 |
|
|
| 37 |
|
|
| 36 |
|
| Add: interest expense - net |
|
| 70 |
|
|
| 65 |
|
|
| 71 |
|
|
| 40 |
|
|
| 52 |
|
|
| 37 |
|
| Less: tax benefit on interest expense - net * |
|
| (17 | ) |
|
| (16 | ) |
|
| (16 | ) |
|
| (12 | ) |
|
| (12 | ) |
|
| (9 | ) |
| Reported NOPAT |
| $ | 1,753 |
|
| $ | 1,714 |
|
| $ | 1,631 |
|
| $ | 1,629 |
|
| $ | 1,652 |
|
| $ | 1,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income - Linde plc |
| $ | 1,859 |
|
| $ | 1,821 |
|
| $ | 1,753 |
|
| $ | 1,783 |
|
| $ | 1,760 |
|
| $ | 1,693 |
|
| Add: adjusted noncontrolling interests |
|
| 40 |
|
|
| 41 |
|
|
| 36 |
|
|
| 39 |
|
|
| 40 |
|
|
| 39 |
|
| Add: adjusted interest expense - net |
|
| 71 |
|
|
| 67 |
|
|
| 72 |
|
|
| 42 |
|
|
| 56 |
|
|
| 46 |
|
| Less: tax benefit on interest expense - net * |
|
| (17 | ) |
|
| (17 | ) |
|
| (17 | ) |
|
| (13 | ) |
|
| (13 | ) |
|
| (11 | ) |
| Adjusted NOPAT |
| $ | 1,953 |
|
| $ | 1,912 |
|
| $ | 1,844 |
|
| $ | 1,851 |
|
| $ | 1,843 |
|
| $ | 1,767 |
|
*Tax benefit on interest expense - net is generally presented using the reported effective rate.
| 4-quarter trailing reported NOPAT |
| $ | 6,727 |
|
| $ | 6,626 |
|
| $ | 6,492 |
|
| $ | 6,246 |
|
| $ | 5,930 |
|
| $ | 4,692 |
|
| 4-quarter trailing adjusted NOPAT |
| $ | 7,560 |
|
| $ | 7,450 |
|
| $ | 7,305 |
|
| $ | 7,101 |
|
| $ | 6,863 |
|
| $ | 6,638 |
|
| Page 10 of 10 |
|
|
| 2024 |
|
| 2023 |
| ||||||||||||||||||
| (Millions of dollars) |
| Q2 |
|
| Q1 |
|
| Q4 |
|
| Q3 |
|
| Q2 |
|
| Q1 |
| ||||||
| Equity and redeemable noncontrolling interests: |
| |||||||||||||||||||||||
| Redeemable noncontrolling interests |
| $ | 13 |
|
| $ | 13 |
|
| $ | 13 |
|
| $ | 13 |
|
| $ | 13 |
|
| $ | 13 |
|
| Linde plc shareholders' equity |
|
| 38,179 |
|
|
| 38,829 |
|
|
| 39,720 |
|
|
| 38,898 |
|
|
| 39,911 |
|
|
| 39,970 |
|
| Noncontrolling interests |
|
| 1,359 |
|
|
| 1,387 |
|
|
| 1,362 |
|
|
| 1,327 |
|
|
| 1,324 |
|
|
| 1,353 |
|
| Total equity and redeemable noncontrolling interests |
| $ | 39,551 |
|
| $ | 40,229 |
|
| $ | 41,095 |
|
| $ | 40,238 |
|
| $ | 41,248 |
|
| $ | 41,336 |
|
| Reported capital |
| $ | 56,443 |
|
| $ | 55,700 |
|
| $ | 55,804 |
|
| $ | 54,347 |
|
| $ | 55,381 |
|
| $ | 55,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity and redeemable noncontrolling interests |
| $ | 39,551 |
|
| $ | 40,229 |
|
| $ | 41,095 |
|
| $ | 40,238 |
|
| $ | 41,248 |
|
| $ | 41,336 |
|
| Add: Adjusted net debt |
|
| 16,888 |
|
|
| 15,466 |
|
|
| 14,702 |
|
|
| 14,101 |
|
|
| 14,123 |
|
|
| 13,802 |
|
| Less: Linde AG Goodwill (a) |
|
| 24,256 |
|
|
| 24,256 |
|
|
| 24,256 |
|
|
| 24,256 |
|
|
| 24,256 |
|
|
| 24,256 |
|
| Less: Linde AG Indefinite lived intangibles (a) |
|
| 1,868 |
|
|
| 1,868 |
|
|
| 1,868 |
|
|
| 1,868 |
|
|
| 1,868 |
|
|
| 1,868 |
|
| Adjusted capital |
| $ | 30,315 |
|
| $ | 29,571 |
|
| $ | 29,673 |
|
| $ | 28,215 |
|
| $ | 29,247 |
|
| $ | 29,014 |
|
| (a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger. | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending capital (see above) |
| $ | 56,443 |
|
| $ | 55,700 |
|
| $ | 55,804 |
|
| $ | 54,347 |
|
| $ | 55,381 |
|
| $ | 55,151 |
|
| 5-quarter average ending capital |
| $ | 55,535 |
|
| $ | 55,277 |
|
| $ | 54,910 |
|
| $ | 53,853 |
|
| $ | 53,669 |
|
| $ | 53,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending adjusted capital (see above) |
| $ | 30,315 |
|
| $ | 29,571 |
|
| $ | 29,673 |
|
| $ | 28,215 |
|
| $ | 29,247 |
|
| $ | 29,014 |
|
| 5-quarter average ending adjusted capital |
| $ | 29,404 |
|
| $ | 29,144 |
|
| $ | 28,774 |
|
| $ | 27,713 |
|
| $ | 27,523 |
|
| $ | 27,715 |
|
| After-tax ROC (4 quarter reported NOPAT / 5-quarter average ending capital) |
|
| 12.1 | % |
|
| 12.0 | % |
|
| 11.8 | % |
|
| 11.6 | % |
|
| 11.0 | % |
|
| 8.7 | % |
| Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT / 5-quarter average ending adjusted capital) |
|
| 25.7 | % |
|
| 25.6 | % |
|
| 25.4 | % |
|
| 25.6 | % |
|
| 24.9 | % |
|
| 24.0 | % |
| Page 10 of 10 cont'd |