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Jim Cramer Talks With Linde CEO

Industrial gas supplier has record backlog with more than $13 billion in projects to be completed.

Industrial gas supplier Linde has a very long to-do list, $13.5 billion worth, including a $600 million commitment from Taiwan Semiconductor  (TSMC)  for a foundry in Arizona. At the same time, Linde is making a major effort toward clean hydrogen, with a special website dedicated to that effort at www.lindehydrogen.com.

Steve Angel, CEO of Linde  (LIN) - Get Linde plc Report, told Jim Cramer on a recent episode of the Mad Money TV show that Linde's most recent quarter included both a record backlog of projects and a record return on capital. The company now has $13.5 billion worth of projects to be completed, Angel told Cramer.

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Shares of Linde dipped fractionally, down 0.3%, after the company reported strong earnings that included tightening gross margins. Angel will move from his job as CEO to chairman next March.

When asked about those tightening gross margins, Angel explained that Linde is seeing cost inflation, primarily with power costs. And while those costs will be passed on to customers, that pass-through is not instantaneous, which means margins will shrink until things are caught up.

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Cramer said investors rarely get an opportunity to buy Linde on a dip, so should be ready when that opportunity arises.

Linde has appointed Sanjiv Lamba to succeed Angel as Chief Executive Officer, effective March 1, 2022.

Lamba was named Linde's chief operating officer in October 2020. In addition to his appointment as CEO, Lamba will join Linde's board of directors, effective March 1, 2022.

Angel was named chief executive officer of Linde in 2018, after leading the merger of Linde AG and Praxair. Prior to his role as Linde CEO, Angel had served as chairman, president and CEO of Praxair, Inc. since 2007.

Linde is a leading global industrial gases and engineering company with 2020 sales of $27 billion. The company serves a variety of end markets including chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde’s industrial gases are used in numerous applications, from oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and more. 

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