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37 min ago 2 min read
They say things come in threes and that’s certainly the case for Linde in these strange times of industrial security and unpredictability.
For its consumer related resilient end markets, healthcare remains its largest sector (16% of year-on-year sales) followed by electronics (10%) and food & beverage (9%).
Driven by the huge boom in AI and demand for advanced chips, electronics is by far its fastest growing sector (10%), with sales twice that of food & beverage.
For its industrial related, more cyclical end markets, another trio is driving growth – manufacturing (21%), chemicals & energy (22%) and metals & mining (10%).
As it deals with resilience and cyclicality, Linde remains committed to high-margin, , strategic price management, and a diversified portfolio that buffers against industrial downturns.
Speaking on today’s call, in which net income came in at $1.9bn and its backlog now stands at , Chief Financial Officer Matt White said US healthcare business has been relatively flat.
“US healthcare policy resulted in less services for a specific piece of equipment which is reflected in the current run rate and will continue for the next several quarters,” he said. “The rest of healthcare is performing as anticipated, providing a resilient balance to more cyclical markets.”
The US beverage business continues to see increased customer need for new services and applications, while traditional bottling and food freezing growth remain quite strong.
Elsewhere he said US industry saw higher activity with hydrogen and nitrogen in Gulf coast refining and Latin American upstream while APAC increases came from recent investments in Jurong Island.
“It remains to be seen what the longer term effects from the Middle East conflict,” he added. “So far it appears activity is relocating to more feedstock advantaged assets in the Americas and to a lesser extent, APAC.”
