OREANDA-NEWS. In the nine months to 30 September 2014, the technology company Linde achieved a slight increase in Group revenue despite unfavourable exchange rate effects. Group operating profit, on the other hand, was not as high as the figure achieved in the first nine months of 2013. "Although global economic growth slowed down in the course of the year, we held our own pretty well," said Dr Wolfgang Buchele, Chief Executive Officer of Linde AG. "At the same time, we have recognised some impairment losses, which were required due to changed conditions in some regions in the Gases Division."

Given these impairment losses, Linde will no longer be able to achieve the target it had set itself for the 2014 financial year of around 10 percent for return on capital employed (reported ROCE). The Group now expects to achieve a similar level of Group operating profit (EBIT before non-recurring items adjusted for the amortisation of intangible assets and the depreciation of tangible assets) in the 2014 financial year as in 2013, after adjusting for exchange rate effects. Until now, Linde had anticipated that it would achieve a moderate improvement in Group operating profit. The Group continues to expect to achieve solid growth in revenue in 2014 after adjusting for exchange rate effects.

As regards the Group's medium-term targets, CEO Buchele explained: "We will continue to implement our strategy which is geared towards profitability and sustainability. However, we have to take account of the fact that economic growth has been much weaker than we all expected. In addition, future prospects for global economic trends have recently dulled." Seen from today's standpoint, Linde therefore assumes that it will not be able to achieve the earnings target it originally set itself for 2016 until 2017. Depending on economic trends, Linde expects to achieve Group operating profit of EUR 4.5 bn to EUR 4.7 bn and a reported ROCE of 11 percent to 12 percent in 2017, based on current exchange rates.