Linde plc (Nasdaq: LIN) today announced its first-quarter 2024 financial results, with a net income of $1,627 million and diluted earnings per share (EPS) of $3.35, reflecting increases of 7% and 9%, respectively. Excluding Linde AG purchase accounting impacts and other charges, the adjusted net income was $1,821 million, an 8% rise from the previous year. Adjusted EPS was $3.75, up 10% year-over-year.
The company reported first-quarter sales of $8,100 million, a 1% decrease from the previous year. Underlying sales increased by 1%, driven by a 2% increase in prices, which was partially offset by a 1% decline in volumes, primarily in the manufacturing sector.
Operating profit for the first quarter was $2,095 million, with an adjusted operating profit of $2,341 million, a 6% increase from the previous year. This improvement was attributed to higher prices and continued productivity initiatives across all segments. The adjusted operating profit margin was 28.9%, up 200 basis points from the previous year and 130 basis points higher when excluding the effects of cost pass-through.
Operating cash flow for the first quarter increased by 2% to $1,954 million. After capital expenditures of $1,048 million, free cash flow was $906 million. During the quarter, Linde returned $1,694 million to shareholders through dividends and stock repurchases, net of issuances.
Commenting on the results and outlook, CEO Sanjiv Lamba said, “I’m proud of how the Linde team continues to deliver high-quality results despite economic headwinds. We had another strong quarter, growing EPS by 10%, ROC to 25.6%, and expanding operating margins by 200 basis points, reaching 28.9%. These results demonstrate the resiliency of our integrated industrial gas model through optimizing our network density, all while developing high-quality growth opportunities.”
Lamba added, “Despite the uncertain economic environment, I remain confident in our ability to continue creating shareholder value through our proven operating model.”
For the second quarter of 2024, Linde expects adjusted diluted EPS to be in the range of $3.70 to $3.80, representing a 4% to 6% increase from the prior-year quarter, or 5% to 7% when excluding a 1% estimated currency headwind.
For the full year 2024, the company anticipates adjusted diluted EPS to be between $15.30 and $15.60, up 8% to 10% from the previous year, or 9% to 11% when excluding a 1% estimated currency headwind. Full-year capital expenditures are expected to range from $4.0 billion to $4.5 billion to support growth and maintenance requirements, including a $4.9 billion contractual sale of gas project backlog.
