Engineering Division

Revenue and earnings trends in Linde’s international plant construction project business reflected the progress made on individual projects. Revenue in the Engineering Division fell in the first quarter of 2015 by 4.7 percent to EUR 668 m (2014: EUR 701 m). There was also a decrease in operating profit, from EUR 71 m in the first three months of 2014 to EUR 57 m in the first three months of 2015. The operating margin of 8.5 percent was not as high as the figure for the prior-year period of 10.1 percent. However, the operating margin continues to be above the industry average and slightly above the target Linde has set itself for the current financial year.

Due to the current low price of oil and the resultant faltering demand in plant construction, order intake in the three months to 31 March 2015 was just EUR 280 m (2014: EUR 701 m).

In the first quarter of 2015, Linde was awarded a contract to build an air separation plant for steel-producer Bhushan Power & Steel Limited in India. The Group will construct the plant on the Rengali site. Under the terms of the agreement, Linde will be responsible for the basic and detailed engineering as well as for the procurement and supply of the equipment and plant components.

During the reporting period, Linde was also awarded the contract to supply a helium refrigeration plant to the European Spallation Source (ESS) in Lund, Sweden. The plant will be delivered to Lund in summer 2017. Then it will be installed so as to come on stream in summer 2018. Die European Spallation Source is an interdisciplinary research centre based on the world’s most intense source of neutrons.

Just under half of the total order intake in the Engineering Division in the first quarter of 2015 came from the Asia/Pacific region. Just over a third of the order intake came from Europe and around 17 percent from North America.

50 percent of new orders related to the natural gas plant product area or the hydrogen and synthesis gas plant product area. The rest of the order intake was spread relatively evenly over the remaining types of plant.

The order backlog in the Engineering Division at 31 March 2015 remained very high at EUR 4.468 bn (31 December 2014: EUR 4.672 bn).

 (XLS:) Download

Engineering Division

 

 

 

 

 

 

 

January to March

in € million

 

2015

 

2014

Revenue

 

668

 

701

Order intake

 

280

 

701

Order backlog at 31.03./31.12.

 

4,468

 

4,672

Operating profit

 

57

 

71

Operating margin

 

8.5%

 

10.1%

 (XLS:) Download

Engineering Division – Order intake by region

 

 

 

 

 

 

 

 

 

 

 

January to March

in € million

 

2015

 

in percent

 

2014

 

in percent

Asia/Pacific

 

122

 

43.6

 

111

 

15.8

Europe

 

91

 

32.5

 

253

 

36.1

North America

 

47

 

16.8

 

298

 

42.5

Middle East

 

13

 

4.6

 

8

 

1.1

Africa

 

6

 

2.1

 

10

 

1.5

South America

 

1

 

0.4

 

21

 

3.0

Engineering Division

 

280

 

100.0

 

701

 

100.0

 (XLS:) Download

Engineering Division – Order intake by plant type

 

 

 

 

 

 

 

 

 

 

 

January to March

in € million

 

2015

 

in percent

 

2014

 

in percent

Natural gas plants

 

84

 

30.0

 

301

 

42.9

Air separation plants

 

36

 

12.9

 

87

 

12.4

Olefin plants

 

38

 

13.6

 

66

 

9.4

Hydrogen and synthesis gas plants

 

56

 

20.0

 

178

 

25.4

Other

 

66

 

23.5

 

69

 

9.9

Engineering Division

 

280

 

100.0

 

701

 

100.0