In This Article:
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Revenue: Reported at $8.1 billion, a decrease of 1% year-over-year, falling short of estimates of $8.395 billion.
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Net Income: Achieved $1,627 million, down from the previous year's $1,783.52 million.
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Earnings Per Share (EPS): Recorded at $3.35, up 9% year-over-year but below the estimated $3.67.
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Adjusted EPS: Reached $3.75, showing a 10% increase year-over-year and surpassing the estimated $3.67.
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Operating Profit: Grew to $2.1 billion, with an adjusted operating profit of $2.3 billion, up 6% from the previous year.
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Operating Margin: Improved to 28.9% on an adjusted basis, a 200 basis point increase from the prior year.
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Free Cash Flow: Posted at $906 million after capital expenditures, demonstrating robust financial health.
On May 2, 2024, Linde PLC (NASDAQ:LIN), the world's leading industrial gas supplier, disclosed its financial results for the first quarter of 2024 through its 8-K filing. The company reported a slight decline in sales to $8.1 billion, aligning closely with analyst expectations of $8,395.20 million. Despite this, the adjusted earnings per share (EPS) of $3.75 surpassed the estimated $3.67, showcasing a robust 10% year-over-year growth.
Financial Highlights and Performance Metrics
Linde's operating profit stood at $2.1 billion, with an adjusted figure of $2.3 billion, marking a 6% increase from the previous year. This improvement was largely driven by strategic pricing adjustments and ongoing productivity initiatives, which also expanded the adjusted operating profit margin by 200 basis points to 28.9%. The company's net income rose to $1,627 million, although it fell slightly short of the estimated $1,783.52 million. The diluted EPS increased by 9% to $3.35.
The company's robust performance is further underscored by its operational efficiency, with a return on capital (ROC) reaching 25.6% and operating margins expanding significantly. Linde's ability to generate strong free cash flow, which amounted to $906 million after capital expenditures, highlights its financial health and operational effectiveness.
Segment Performance and Economic Impact
Geographically, the Americas maintained steady sales, while the APAC region showed a promising 4% growth in underlying sales, driven by the chemicals and electronics sectors. However, the EMEA segment experienced a 4% decline in sales due to lower volumes in the manufacturing sector, despite a price increase.
Linde's engineering sector reported stable sales with an operating profit margin of 18.6%. The order intake and equipment backlog indicate sustained demand and a strong market position.