Gas operations lift BOC profits
Industrial gases group BOC today said a strong performance from its global gases operations had helped it post an 18.5% rise in half-yearly operating profits to £273.8m (€408m).
The company said both its global gases businesses had performed well and the recovery at its BOC Edwards semiconductor arm had picked up.
The group, which employs 46,000 people in more than 50 countries, said efficiencies and increased activity helped it boost turnover and operating profits in its process gas solutions business, which supplies oxygen and other gases by pipeline to the oil refining, chemicals and steel industries.
The group is planning to commission new plants for the business which it said would support accelerated growth.
Significantly better operating profits in its industrial and special products division, which supplies medical gases and other specialised products in cylinders, were helped by a particularly strong performance in the south Pacific region.
It was benefiting from an upturn in key economies worldwide, the group said.
Margins at BOC Edwards, which provides products and services to the semiconductor industry, had suffered from the weaker US dollar, it said.
But improved order intake for semiconductor and flat panel equipment was expected to support further growth in the division’s turnover and profits in coming months.
Chief executive Tony Isaac said: “In these improved economic conditions, business efficiency programmes, increased plant reliability and productivity and firm pricing will also underpin profit performance across the group.”
Besides gases and BOC Edwards, BOC has a logistics company, Gist, that serves customers including Marks & Spencer.
It also owns Afrox hospitals, the largest supplier of private health care in southern Africa, which increased turnover and operating profits during the half year to March 31.
Gist saw turnover fall slightly in overall terms as the loss of Marks & Spencer general merchandise business was largely offset by growth elsewhere. Additional volumes from the division’s expansion of its business with M&S Simply Food outlets and from new business with Carlsberg Tetley.
