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Linde plc Reports Strong First Quarter 2023 Results with 31% Increase in Operating Profit

Strategic Insights

— 2 min read

Linde plc, a leading industrial gas company, reported strong financial results for the first quarter of 2023, driven by higher pricing, productivity initiatives, and lower depreciation and amortization expenses. The company's adjusted operating profit increased by 31% year-over-year, reaching $1,933 million, or 23.6% of sales. This growth was primarily attributed to a 33% increase in diluted earnings per share (EPS) to $3.06, compared to $2.30 in the first quarter of 2022.

Key Takeaways:

  • Linde plc's adjusted operating profit increased by 31% year-over-year, reaching $1,933 million in the first quarter of 2023.
  • The company's diluted earnings per share (EPS) increased by 33% to $3.06, compared to $2.30 in the first quarter of 2022.
  • Higher pricing, productivity initiatives, and lower depreciation and amortization expenses drove the increase in operating profit.
  • The company's reported effective tax rate (ETR) decreased to 22.2% in the first quarter of 2023, compared to 24.0% in the first quarter of 2022.
  • Linde plc's adjusted effective tax rate was 24.1% in the first quarter of 2023, compared to 24.3% in the first quarter of 2022.
  • The company's net pension and OPEB cost (benefit) decreased to benefits of $45 million in the first quarter of 2023, compared to $64 million in the first quarter of 2022.
  • Linde plc's non-GAAP measures and reconciliations are included in the "Non-GAAP Measures and Reconciliations" section of the MD&A.
  • The company's reported sales decreased by 8% in the first quarter of 2023, primarily due to currency, lower cost pass-through, the net impact of acquisitions and divestitures, and productivity gains.
  • Linde plc's cost of sales, exclusive of depreciation and amortization, decreased by $367 million, or 8%, in the first quarter of 2023, primarily due to higher pricing.
  • The company's selling, general, and administrative expenses (SG&A) increased by 2% in the first quarter of 2023, primarily due to higher costs related to the acquisition of nexAir.
  • Linde plc's depreciation and amortization decreased by 4% in the first quarter of 2023, primarily due to the net impact of acquisitions and new project start-ups.

Statistics:

  • Adjusted operating profit: $1,933 million (31% increase year-over-year)
  • Diluted earnings per share (EPS): $3.06 (33% increase year-over-year)
  • Effective tax rate (ETR): 22.2% (decrease of 1.8% year-over-year)
  • Net pension and OPEB cost (benefit): $45 million (decrease of $19 million year-over-year)
  • Adjusted effective tax rate: 24.1% (decrease of 0.2% year-over-year)

Sources:

  • EDGAR Online via COMTEX
  • Linde plc
  • COMTEX_430396796/2041/2023-04-27T13:12:27
  • Cybernet Data Systems, Inc. All Rights Reserved

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