Revenue, operating profit and ROCE

Linde achieved a 5.3 percent increase in Group revenue in the 2015 financial year to EUR 17.944 bn (2014: EUR 17.047 bn). Positive exchange rate effects had an impact here. In particular, the exchange rates of certain currencies (the US dollar, the British pound and the Chinese renminbi) to the euro moved significantly, especially in the first six months of the year. This created positive exchange rate effects arising on the translation of various local currencies into the reporting currency (the euro). After adjusting for exchange rate effects, Group revenue was 2.3 percent below the figure for the prior year.

As far as Group operating profit is concerned, Linde achieved a value that was up by 5.4 in a year-on-year comparison to EUR 4.131 bn (2014: EUR 3.920 bn). Exchange rate effects also need to be taken into consideration here. If an adjustment were to be made for these effects, the Group operating profit would have dropped by 2.4 percent.

The Group operating margin in 2015 was 23.0 percent (2014: 23.0 percent).

Return on capital employed (ROCE) after adjusting for non-recurring items was 9.4 percent in 2015 (2014: 9.5 percent). ROCE is calculated as EBIT adjusted for non-recurring items divided by average capital employed. When looking at the ROCE development, it is important to bear in mind that the average capital employed rose considerably due to exchange rate effects. The capital employed is derived from the items in the statement of financial position, which are converted using the exchange rates on balance sheet date. The exchange rate of the euro as at 31 December 2015 had fallen considerably against most local currencies as against 31 December 2014. This development resulted in an increase in capital employed due to exchange rate effects and, as a result, to a lower ROCE despite the improved income figure.

Group revenue and Group operating profit
Group revenue and Group operating profit (Bar chart)
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Revenue and operating profit by division

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

in EUR m

 

Revenue

 

Operating profit

 

Revenue

 

Operating profit

Gases Division

 

15,168

 

4,151

 

13,982

 

3,835

Engineering Division

 

2,594

 

216

 

3,106

 

300

Other Activities (including consolidation)

 

182

 

−236

 

−41

 

−215

Group

 

17,944

 

4,131

 

17,047

 

3,920