Engineering Division

Revenue in the Engineering Division fell in the first quarter of 2016 by 15.0 percent to EUR 568 m (2015: EUR 668 m). Operating profit here also dropped to EUR 46 m (2015: EUR 57 m). The operating margin was 8.1 percent (2015: 8.5 percent). This continues to be above the industry average and matched the target of around 8 percent Linde has set itself for the current financial year. The order backlog in the Engineering Division at 31 March 2016 remained solid at EUR 4.241 bn (31 December 2015: EUR 4.541 bn).

Due to the persistently low price of oil and the resultant faltering demand in plant construction, order intake in the three months to 31 March 2016 was EUR 310 m (2015: EUR 280 m).

Around 50 percent of new orders related to air separation plants. A large part of these are in-house contracts acquired by the Engineering Division in the reporting period from the Gases Division.

Linde was commissioned by its customer JSC “Grodno Azot” in Belarus to build two air separation plants, each with a capacity of 9,000 normal cubic metres of oxygen per hour. Linde is responsible for the engineering and the procurement. The value of the contract is around EUR 30 m. The plants are due to be completed in the second quarter of 2018.

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Engineering Division

 

 

 

 

 

 

 

January to March

in € million

 

2016

 

2015

Revenue

 

568

 

668

Order intake

 

310

 

280

Order backlog at 31.03./31.12.

 

4,241

 

4,541

Operating profit

 

46

 

57

Operating margin

 

8.1%

 

8.5%

 (XLS:) Download

Engineering Division: Order intake by plant type

 

 

 

 

 

 

 

 

 

 

 

January to March

in € million

 

2016

 

in percent

 

2015

 

in percent

Natural gas plants

 

26

 

8.4

 

84

 

30.0

Air separation plants

 

151

 

48.7

 

36

 

12.9

Olefin plants

 

38

 

12.3

 

38

 

13.6

Hydrogen and synthesis gas plants

 

57

 

18.4

 

56

 

20.0

Other

 

38

 

12.2

 

66

 

23.5

Engineering Division

 

310

 

100.0

 

280

 

100.0