Linde plc (LIN) Bundle
A Brief History of Linde plc
Linde plc, a global leader in industrial gases and engineering, has a rich history that reflects a strong commitment to innovation and market leadership. As of 2024, Linde continues to expand its footprint across various sectors, including healthcare, chemicals, energy, manufacturing, metals and mining, food and beverage, and electronics.
Financial Performance Overview
In the third quarter of 2024, Linde reported sales of $8,356 million, a 2% increase from $8,155 million in the same quarter of 2023. For the nine months ended September 30, 2024, total sales reached $24,723 million, compared to $24,552 million in the prior year, reflecting a 1% growth.
| Period | Sales (Million $) | Change (%) |
|---|---|---|
| Q3 2024 | 8,356 | 2 |
| Q3 2023 | 8,155 | - |
| 9M 2024 | 24,723 | 1 |
| 9M 2023 | 24,552 | - |
Operating Profit and Margins
For Q3 2024, Linde's reported operating profit stood at $2,086 million, with an operating margin of 25.0%. This represents a slight increase compared to the $2,052 million and 25.2% margin reported in Q3 2023. The adjusted operating profit for the same period was $2,477 million, reflecting a 7% increase year-over-year.
| Period | Operating Profit (Million $) | Operating Margin (%) |
|---|---|---|
| Q3 2024 | 2,086 | 25.0 |
| Q3 2023 | 2,052 | 25.2 |
| 9M 2024 | 6,365 | 25.7 |
| 9M 2023 | 5,996 | 24.4 |
Net Income and Earnings Per Share (EPS)
Net income for the third quarter of 2024 was $1,603 million, compared to $1,601 million in Q3 2023, indicating stable profitability. The diluted earnings per share (EPS) for Q3 2024 was $3.22, slightly up from $3.19 in the previous year. For the nine months ended September 30, 2024, net income was $4,968 million, an increase from $4,765 million in the same period of 2023.
| Period | Net Income (Million $) | Diluted EPS ($) |
|---|---|---|
| Q3 2024 | 1,603 | 3.22 |
| Q3 2023 | 1,601 | 3.19 |
| 9M 2024 | 4,968 | 10.02 |
| 9M 2023 | 4,765 | 9.43 |
Cash Flow and Investments
Cash provided by operations for the nine months ended September 30, 2024, was $6,614 million, a slight increase from $6,578 million in 2023. Linde's capital expenditures for the same period rose to $3,247 million, up from $2,636 million in 2023, driven by investments in new plant and production equipment.
| Activity | 2024 (Million $) | 2023 (Million $) |
|---|---|---|
| Cash from Operations | 6,614 | 6,578 |
| Capital Expenditures | 3,247 | 2,636 |
Debt and Financing Activities
Linde's total debt as of September 30, 2024, was $22,262 million, compared to $19,373 million in 2023. The company issued new bonds during the year, including €700 million of 3.00% notes due in 2028 and €850 million of 3.20% notes due in 2031.
| Debt Instrument | Amount (Million $) | Due Date |
|---|---|---|
| 3.00% Notes | 700 | 2028 |
| 3.20% Notes | 850 | 2031 |
Global Operations and Market Presence
Linde operates in various regions including the Americas, EMEA, and APAC. As of September 30, 2024, the sales breakdown by region showed a stable performance, with the Americas contributing $3,618 million, EMEA at $2,111 million, and APAC at $1,716 million for Q3 2024.
| Region | Sales (Million $) |
|---|---|
| Americas | 3,618 |
| EMEA | 2,111 |
| APAC | 1,716 |
A Who Owns Linde plc (LIN)
Major Shareholders
As of 2024, Linde plc (LIN) has a diverse ownership structure, with significant holdings by both institutional and individual investors. The major shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares (approx.) |
|---|---|---|
| Institutional Investors | 75%+ | Approximately 360 million shares |
| Individual Investors | Less than 25% | Approximately 120 million shares |
| Non-controlling Interests | ~3.5% | Approximately 16.8 million shares |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Linde plc as of 2024:
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 40.8 million shares |
| BlackRock, Inc. | 8.2% | 39.5 million shares |
| State Street Corporation | 5.7% | 27.4 million shares |
| Capital Research Global Investors | 5.3% | 25.6 million shares |
| Fidelity Management & Research Company | 4.5% | 21.6 million shares |
Recent Changes in Ownership
In 2024, Linde plc experienced some fluctuations in ownership percentages:
- Institutional ownership saw a slight increase from 74.5% to 75%+.
- Individual investor holdings decreased marginally due to increased institutional buying.
Non-controlling Interests
As of September 30, 2024, non-controlling interests in Linde plc primarily consist of investments in the Asia-Pacific region, particularly in China. The reported non-controlling interests income was:
| Period | Non-controlling Interests Income (Millions) |
|---|---|
| Q3 2024 | $53 million |
| Q3 2023 | $36 million |
Ownership Summary
The total equity of Linde plc at the end of Q3 2024 was approximately $40.59 billion, showing a stable growth trend in shareholder equity:
| Equity Component | Amount (Millions) |
|---|---|
| Linde plc Shareholders' Equity | $39,173 million |
| Non-controlling Interests | $1,417 million |
| Total Equity | $40,590 million |
Linde plc (LIN) Mission Statement
Linde plc's mission is to enable its customers to succeed while maintaining a commitment to sustainability and innovation. The company focuses on providing a wide range of industrial gases and services, enhancing productivity and efficiency for its clients across various sectors.
Core Values
- Safety: Linde prioritizes safety in all operations, ensuring a secure working environment for employees and stakeholders.
- Integrity: The company conducts its business with the highest ethical standards, fostering trust and transparency.
- Customer Focus: Linde is dedicated to understanding and meeting the unique needs of its customers.
- Innovation: The company continuously invests in research and development to drive technological advancements in the industrial gases sector.
- Sustainability: Linde is committed to reducing its environmental impact and promoting sustainable practices across its operations.
Financial Performance Overview
As of September 30, 2024, Linde reported a robust financial performance, highlighted by the following key metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $8,356 million | $8,155 million | 2% |
| Operating Profit | $2,086 million | $2,052 million | 2% |
| Net Income | $1,550 million | $1,565 million | (1%) |
| Diluted Earnings Per Share | $3.22 | $3.19 | 1% |
| Effective Tax Rate | 24.1% | 23.8% | 1.3% |
Strategic Goals
Linde's strategic goals aim to enhance its market position and drive sustainable growth. These include:
- Expanding Market Presence: Linde seeks to increase its footprint in key growth markets, particularly in Asia-Pacific and emerging economies.
- Enhancing Product Offerings: The company is focused on innovating and expanding its product portfolio to meet evolving customer demands.
- Operational Efficiency: Linde aims to improve operational efficiencies through advanced technologies and process optimization.
- Sustainability Initiatives: The company is committed to reducing greenhouse gas emissions and increasing the use of renewable energy sources in its operations.
Recent Developments
In 2024, Linde has made significant investments to support its mission and strategic goals:
| Investment Area | Amount | Description |
|---|---|---|
| Capital Expenditures | $3,247 million | Investments in new plant and production equipment to support backlog growth. |
| Research and Development | $111 million | Focus on innovation in industrial gases and related technologies. |
| Divestitures | $154 million | Proceeds from divestitures primarily in the APAC region. |
| Debt Issuance | $2,628 million | Increased debt to finance strategic initiatives and operational needs. |
Workforce and Culture
As of September 30, 2024, Linde employed 65,596 individuals, reflecting a slight decrease due to ongoing cost reduction initiatives. The company emphasizes a culture of safety, diversity, and inclusion, ensuring that all employees are engaged and aligned with Linde's mission and values.
Overall, Linde plc remains committed to its mission of enabling customer success while fostering sustainable practices and innovation in the industrial gases sector.
How Linde plc (LIN) Works
Company Overview
Linde plc, a leading global industrial gas company, operates in over 100 countries, providing a wide range of products and services including atmospheric gases, process gases, and specialty gases. The company serves various industries including healthcare, chemicals, energy, and manufacturing.
Financial Performance
As of September 30, 2024, Linde reported the following financial figures:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Sales | $8,356 million | $8,155 million | $24,723 million | $24,552 million |
| Operating Profit | $2,086 million | $2,052 million | $6,365 million | $5,996 million |
| Net Income | $1,550 million | $1,565 million | $4,840 million | $4,656 million |
| Diluted EPS | $3.22 | $3.19 | $10.02 | $9.43 |
| Effective Tax Rate | 24.1% | 23.8% | 23.3% | 22.6% |
Segment Performance
Linde's performance can be segmented into several regions and operational categories. The following table summarizes sales and operating profit by segment for Q3 2024:
| Segment | Sales (Q3 2024) | Operating Profit (Q3 2024) | Sales (Q3 2023) | Operating Profit (Q3 2023) |
|---|---|---|---|---|
| Americas | $3,618 million | $1,052 million | $3,629 million | $1,063 million |
| EMEA | $2,111 million | $626 million | $2,105 million | $557 million |
| APAC | $1,716 million | $497 million | $1,639 million | $459 million |
| Engineering | $611 million | $108 million | $467 million | $116 million |
| Other | $300 million | $16 million | $315 million | $23 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, Linde reported cash flow metrics as follows:
| Cash Flow Category | Amount (Millions) |
|---|---|
| Net Cash Provided by Operating Activities | $6,614 |
| Net Cash Used for Investing Activities | ($3,268) |
| Net Cash Used for Financing Activities | ($2,749) |
Debt and Capital Structure
As of September 30, 2024, Linde's debt and equity structure was as follows:
| Metric | Amount (Millions) |
|---|---|
| Total Debt | $22,262 |
| Cash and Cash Equivalents | $5,187 |
| Net Debt | $17,075 |
| Shareholders' Equity | $39,173 |
Employee Metrics
As of September 30, 2024, Linde employed 65,596 individuals, reflecting a decrease from the previous year due to ongoing cost reduction programs and a divestiture in the APAC region.
Market Position and Strategic Outlook
Linde continues to focus on productivity initiatives and strategic pricing to counteract inflationary pressures. The company has a strong project backlog amounting to approximately $7 billion, indicating robust future revenue potential. Additionally, Linde is adapting to global market conditions, including currency fluctuations impacting its international operations.
How Linde plc (LIN) Makes Money
Revenue Streams
Linde plc generates revenue primarily through the production and distribution of industrial gases and engineering services. The company operates in various segments, including Americas, EMEA (Europe, Middle East, and Africa), APAC (Asia-Pacific), and Engineering. The revenue from these segments is broken down into different distribution methods such as Merchant, On-Site, Packaged Gas, and Other.
| Segment | Q3 2024 Sales (Million $) | Q3 2023 Sales (Million $) | YTD 2024 Sales (Million $) | YTD 2023 Sales (Million $) |
|---|---|---|---|---|
| Americas | 3,618 | 3,629 | 10,833 | 10,721 |
| EMEA | 2,111 | 2,105 | 6,293 | 6,442 |
| APAC | 1,716 | 1,639 | 4,964 | 4,920 |
| Engineering | 611 | 467 | 1,694 | 1,502 |
| Other | 300 | 315 | 939 | 967 |
| Total | 8,356 | 8,155 | 24,723 | 24,552 |
Operating Profit
In the third quarter of 2024, Linde's reported operating profit was $2,086 million, or 25.0% of sales, reflecting a 2% increase compared to the prior year. The year-to-date operating profit for 2024 reached $6,365 million, a 6% increase from 2023. This growth is attributed to higher pricing and productivity initiatives, which offset cost inflation and other charges.
| Metric | Q3 2024 (Million $) | Q3 2023 (Million $) | YTD 2024 (Million $) | YTD 2023 (Million $) |
|---|---|---|---|---|
| Reported Operating Profit | 2,086 | 2,052 | 6,365 | 5,996 |
| Adjusted Operating Profit | 2,477 | 2,306 | 7,240 | 6,798 |
| Operating Margin (%) | 25.0 | 25.2 | 25.7 | 24.4 |
Cost Structure
The cost of sales, exclusive of depreciation and amortization, for the nine months ended September 30, 2024, was $12,823 million, compared to $13,061 million in 2023. Selling, general, and administrative expenses were $2,523 million in 2024, up from $2,463 million in 2023. Depreciation and amortization remained stable at $2,867 million for both periods.
Profitability Metrics
For the third quarter of 2024, Linde's diluted earnings per share (EPS) was $3.22, reflecting a 1% increase compared to $3.19 in Q3 2023. The year-to-date diluted EPS for 2024 was $10.02, a 6% increase from $9.43 in 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (Million $) | 1,550 | 1,565 | 4,840 | 4,656 |
| Diluted EPS ($) | 3.22 | 3.19 | 10.02 | 9.43 |
Cash Flow and Investments
For the nine months ended September 30, 2024, cash provided by operating activities was $6,614 million, compared to $6,578 million in 2023. Capital expenditures during this period were $3,247 million, an increase from $2,636 million in 2023.
Debt and Financing Activities
Net cash used for financing activities in the nine months ended September 30, 2024, was $2,749 million, a decrease from $4,620 million in 2023. The increase in debt was $2,628 million compared to $227 million in 2023, reflecting higher net debt issuances.
| Metric | YTD 2024 (Million $) | YTD 2023 (Million $) |
|---|---|---|
| Cash from Operations | 6,614 | 6,578 |
| Capital Expenditures | 3,247 | 2,636 |
| Net Financing Activities | (2,749) | (4,620) |
| Debt Increase | 2,628 | 227 |
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Article updated on 8 Nov 2024
Resources:
- Linde plc (LIN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Linde plc (LIN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Linde plc (LIN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.