Oct 31 (Reuters) - Linde ( LIN ) on Friday followed a

quarterly earnings beat with a cautious profit outlook for the

rest of the year because of weakness in the European business of

the world's largest industrial gases company.

The U.S.-German group, which supplies gases such as oxygen,

nitrogen and hydrogen to factories and hospitals, forecast its

fourth-quarter adjusted earnings per share at between $4.10 and

$4.20 per share, below analysts' $4.23 mean estimate, according

to LSEG data.

In the third quarter, Linde ( LIN ) reported a 7% rise in its

adjusted earnings per share to $4.21, ahead of analysts' $4.18

estimate, with sales rising 3% to $8.62 billion, broadly in line

with forecast.

However, volume sales fell 3% in Linde's ( LIN ) largest Europe,

Middle East and Africa region, which accounts for 36% of total

sales and CEO Sanjiv Lamba told analysts the company expected

that trend to continue.

The group's New York-listed shares were down 1.8% at

1535 GMT.

The chemical industry has been grappling with weak demand

and high input costs in Europe, and a challenging regulatory

environment has further pressured companies to rethink their

strategies in the region.

Despite its cautious fourth-quarter outlook, Linde ( LIN )

reaffirmed its full-year forecast of growth of between 5% and 6%

in adjusted earnings per share.