Linde hikes 2021 earnings guidance for the second time this year
July 30 (Reuters) - Linde , the world's largest industrial gas company, on Friday raised its full-year guidance for the second time this year, citing higher pricing and strong volumes across all segments as well as a rebound in its cyclical businesses. The U.S.-German group, a leading supplier of oxygen to hospitals worldwide during the COVID-19 pandemic, now expects adjusted earnings per share to rise 23-25% year-on-year, versus previous guidance for a 17-19% increase.
While healthcare and electronics remained strong in the second quarter, cyclical segments such as manufacturing, metals, and chemicals and refining all also saw double-digit growth, the company said, helped by a post-lockdown economic rebound.
Industrial gas producers tend to have significantly lower exposure to fluctuations in the wider economy due to their long-term contracts, monthly fixed fees and rental income for cylinders.
But with Linde's more cyclical businesses accounting for 62% of the group sales, a broader rebound could significantly lift the company's earnings, it said.
The group's second-quarter adjusted earnings per share came in at $2.70, above the $2.54 forecast from analysts polled by Refinitiv, and beating its own guidance of $2.50-$2.55.
For the third quarter, Linde expects adjusted diluted earnings per share in the range of $2.60 to $2.70, up 21% to 26% year-on-year, and 34% to 39% above the pre-pandemic second quarter of 2019.
Linde had already hiked its 2021 earnings outlook in May, as a strong performance in its healthcare business helped it beat first-quarter forecasts. (Reporting by Bartosz Dabrowski in Gdansk; Additional reporting by Jagoda Darla; Editing by Kirsten Donovan and Jan Harvey)
