Reuters reported that Germany's Linde confirmed its outlook and said that robust demand for industrial gases in Asia and Latin America helped it post better than expected quarterly underlying core.
Linde said that it expected demand from its major customer groups to continue to grow in coming months, boosting full year sales and underlying core profit above the year earlier level.
Mr Wolfgang Reitzle CEO of Linde said that "Even if economic activity loses a little pace, we continue to see good growth opportunities for our business, especially in energy and the environment and in the emerging economies."
Linde's main customers are in the steel and chemical sectors but the company also supplies gases used to process solar cells, make LCD flat screens and lift the giant helium character balloons of Macy's Thanksgiving Day Parade.
Industrial gas makers are seen less vulnerable to any fresh recession than, for instance, the chemicals industry as they have slimmed down, expanded into emerging markets and won strong order backlogs since the last downturn. Still, the company's biggest rivals have sent warning signals on growth in recent days.
Praxair and Air Products both reported robust quarterly results, helped by strong sales to manufacturers, chemical producers and electronics companies, but disappointed investors with a consensus missing outlook.
Air Liquide, the world's No.1 player, reported slowing quarterly sales growth on Wednesday, noting customers were becoming more cautious, partly due to a slowdown in demand from metal producers in Western Europe and Canada.
Linde said that it still aims to grow group operating profit to at least EUR 4 billion in 2014, banking on its full pipeline for on-site business and growth in sales to customers in the healthcare industry to bolster profits.
The company posted third quarter EBITDA that rose 7.3% to EUR 804 million, just above the average analyst estimate of EUR 798 million. The company has been expanding its business in Asia, where it already generates about a third of sales, to tap into still growing demand for liquefied and cylinder gas.
(Sourced from www.reuters.com)
