Linde Fourth Quarter Profit Misses Estimates on Stronger Euro

World’s largest industrial gas producer Linde AG saw its fourth-quarter profit miss analysts’ estimates as a stronger euro eroded revenues.

Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 3.6 percent to 970 million euros ($1.35 billion), while sales declined 4.1 percent to 4.2 billion euros, said Munich-headquartered Linde.

The fourth quarter net profit plunged 5.6 percent to 320 million euros, exceeding the average analysts’ forecast of 315 million euros. However, net profit for 2013 rose 7 percent to 1.32 billion due to cost cuts and high demand.

“Conditions have been unfavorable and exchange rate effects have had an adverse impact on our growth,” said Chief Executive Officer Wolfgang Reitzle on announcing the results. “After adjusting for exchange rate effects, we are expecting solid growth in group revenue in the 2014 financial year. We anticipate that we will achieve a moderate improvement in group operating profit.”

Full-year EBITDA was 3.97 billion euros, meeting the company’s forecast. The company will pay a dividend of 3 euros a share for 2013, up from 2.70 euros a year earlier.

The company reaffirmed its 2016 target of increasing profit to at least 5 billion euros, based on 2012’s exchange rate. The company added that “if the unfavorable exchange rates at the end of 2013 continue to apply, operating profit would be reduced by about 400 million euros”.

Reitzle is retiring in May after a 11-year term that saw him triple the company’s share price by concentrating on industrial gases. He will be succeeded by Wolfgang Buechele, who is Kemira Oyj’s CEO.