* Aims to cut 750-900 mln eur of gross costs in 2013-2016
* Q3 net profit 313 mln eur vs Rtrs poll avg 293 mln
* Q3 revenues 3.89 bln eur vs poll avg 3.88 bln
* Shares indicated up 0.7 percent
(Adds further details, background)
FRANKFURT, Oct 29 Germany's Linde, the
world's No.2 industrial gases producer, is gearing up for tough
times by extending its cost-cutting programme until 2016.
The company, which also reported quarterly earnings above
consensus on Monday, said it aimed to cut gross costs by between
750 million euros ($969.9 million) and 900 million euros in 2013
"This will help to reinforce our high level of profitability
even in a challenging environment," Chief Executive Wolfgang
Reitzle said in a statement, while affirming that Linde aims to
improve its revenues and operating profit this year.
Linde also confirmed its medium-term profit target, saying
it expected to post 4 billion euros of annual operating profit
The Munich-based company's move comes on the heels of other
major German companies, such as Siemens, Puma
and Air Berlin announcing fresh savings
programmes after an economic recovery failed to materialise this
The bulk of Linde's customers are in the steel-making, oil
refining and semiconductors industries but its gases are also
used to help asthma patients breathe more easily and lift the
balloons in the Macy's Thanksgiving Day Parade in New York City.
Linde reported its third-quarter net profit rose to 313
million euros from 290 million a year earlier, beating consensus
of 293 million euros in a Reuters poll.
Revenues were up about 13 percent at 3.89 billion euros,
broadly in line with estimates.
Germany's economy and its companies were resilient through
most of the crisis but are now starting to show signs of wear.
Europe's biggest economy is now seen growing by only 1 percent
"Given the current economic situation, the Linde report can
be seen as a piece of good news," one trader said.
Linde has benefited from its international business, which
makes it less dependent on its German home market, but signs
have been increasing that growth abroad, especially in Asia, is
($1 = 0.7733 euros)
(Reporting by Maria Sheahan; additional reporting by Daniela
Pegna; editing by Victoria Bryan)