Germany's Linde reported operating profit dropped 6.7% to €2.385 billion in 2009 in line with analysts' expectations, while the maker of industrial gases proposed a dividend slightly better than estimated.

Linde said on Thursday it would propose to its shareholders to pay a dividend of €1.80 for 2009, unchanged compared to the previous year. A Reuters poll of analysts had an average of €1.7.

Operating profit - or earnings before interest, taxes, depreciation and amortization excluding one-offs - however was in line with the €2.381 billion average in the Reuters poll.

Linde's guidance for 2009 is second-half would be better than first-half, with full year 2009 results lower than 2008. No guidance has been put out on 2010, though executives told reporters in November they expect 2010 to be above 2009.

Complete figures are due on March 17.

Analysts said Linde has been benefitting from an increase in demand for industrial gases in the last quarter of the year compared to July-September period, with margins also boosted by cost-cuts to reap savings of up to €850 million by 2012.

Linde supplies industrial gases to customers in the chemicals, automotive and steel sectors, which have shown a pick up in manufacturing utilization rates in the last quarter of the year.

No. 1 industrial gases maker Air Liquide said last month it expects further profit growth in 2010 after a slight rise in 2009 as markets gradually recover and on the back of cuts in costs and debts. Its sales were down 8.6% while net profit grew 0.8%.

Linde trades at 15.8 times its estimated 12-months earnings compared with Air Liquide's 17.1, according to StarMine, which weights analyst according to their track record.