Linde plc Reports Strong Second Quarter 2023 Results with 15% Increase in Adjusted Operating Profit

Strategic Insights -

Linde plc, a leading industrial gases company, reported robust second quarter 2023 results, with adjusted operating profit increasing by 15% year-over-year to $2,643 million. The company's revenue grew 13% to $8,244 million, driven by higher pricing, productivity initiatives, and lower depreciation and amortization. Adjusted earnings per share (EPS) also rose 15% to $2.90, reflecting the company's strong operational performance and effective tax planning.

Key Takeaways:

  • Adjusted operating profit increased by 15% year-over-year to $2,643 million, driven by higher pricing and productivity initiatives.
  • Revenue grew 13% to $8,244 million, with higher pricing and lower cost pass-through contributing to the increase.
  • Adjusted earnings per share (EPS) rose 15% to $2.90, reflecting the company's strong operational performance and effective tax planning.
  • Selling, general, and administrative expenses increased 8% to $832 million, driven by higher compensation and costs related to the acquisition of nexAir.
  • Depreciation and amortization increased 5% to $1,451 million, with the net impact of acquisitions and new project start-ups driving the increase.
  • Operating profit growth was driven by higher pricing and productivity initiatives, which more than offset the effects of cost inflation and currency.
  • Net pension and OPEB cost (benefit), excluding service cost, were benefits of $45 million and $90 million for the quarter and six months ended June 30, 2023, respectively.
  • Effective tax rate on an adjusted basis was 23.7% and 23.9% for the quarter and six months ended June 30, 2023, respectively.

Statistics:

  • Revenue growth: +13% year-over-year to $8,244 million
  • Adjusted operating profit: +15% year-over-year to $2,643 million
  • Adjusted EPS: +15% year-over-year to $2.90
  • Selling, general, and administrative expenses: +8% year-over-year to $832 million
  • Depreciation and amortization: +5% year-over-year to $1,451 million
  • Net pension and OPEB cost (benefit), excluding service cost: -$45 million (quarter), -$90 million (six months)
  • Effective tax rate on an adjusted basis: 23.7% (quarter), 23.9% (six months)

Sources:

  • Linde plc (2023) "Second Quarter 2023 Earnings Release"
  • Linde plc (2023) "Non-GAAP Measures and Reconciliations"