German industrial Linde says 1Q profit sank 64 percent

Linde said net profit for the January through March period fell to 160 million euros ($246.4 million) compared with 445 million euros in the year ago quarter, which included the sale of part of its U.S. gas cylinder business.

Sales for the first quarter were up 2 percent to 3 billion euros ($4.62 billion) compared to 2.9 billion euros a year ago. Adjusted for currency effects, sales would have been up nearly 8 percent.

Linde is a supplier of industrial, medical and therapeutic gasses. It also provides engineering for natural gas plants, air separation plants, as well as hydrogen and synthesis gas plants.

"We have seen a solid start to the new financial year and are therefore confident about the remaining ... year," said Wolfgang Reitzle, the company's chief executive.

"We confirm our short-term and medium-term forecasts. We continue to assume that group sales will increase in the current financial year and that earnings will increase at a faster rate than sales. By 2010, we are seeking to achieve a group operating earnings of more than 3 billion euros ($4.62 billion)," he said.

Operating profit in the first quarter rose 6 percent to 602 million euros ($927.08 million), compared to 569 million euros in the year ago quarter.

Linde's gasses division saw a 4.5 percent increase in reported sales in the first quarter to 2.3 billion euros ($3.54 billion) compared to 2.2 billion euros in the year ago quarter.

The Munich-based company said it expects its gases division sales to see average annual growth of about 7 percent in 2008 and said it "wants its gasses division to grow at a more rapid pace than the market and to increase its earnings at a faster rate than sales."

The company said its engineering division saw a 9 percent increase in first quarter sales to 542 million euros ($834.68 million) from 498 million euros in the year ago quarter.