FRANKFURT: Shares in German industrial gas maker Linde plummeted on Tuesday after the group cut its medium-term profit targets as falling oil prices put the brakes on investment.
Shares in Linde tumbled 14.5 percent to an intraday low of 141.75 euros in morning trade on the Frankfurt stock exchange.
Late on Monday, the group had issued a short statement, saying it no longer expected to meet its profit targtets for 2017.
Linde said its return on capital employed -- a key profitability yardstick -- was now projected to reach only nine or ten percent in 2017, instead of 11-12 percent as previously expected.
And operating profit was forecast to come out at 4.2-4.5 billion euros ($4.5-4.8 billion), short of the previous target of 4.5-4.7 billion euros.
"The main reasons for the adjustments are substantially changed overall conditions compared to October 2014, when the targets were defined," Linde explained, pointing to slower growth rates in the relevant sectors.
"The main reason is an expected lower order intake due to a medium-term low oil price resulting in investment hesitancy among customers," the statement said.
In 2014, Linde generated revenues of 17.047 billion euros and operating profit of 3.835 billion euros.
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