BOC profits at top end of hopes
Gases group BOC lifted first quarter profits by 13% today, but said its semiconductor arm continued to face challenging trading conditions.
The group, which employs 46,000 people and serves two million customers in more than 50 countries, announced profits of £132m (€190.6m) for the three months to December 31 – a performance at the top end of market expectations.
All five business segments showed profits growth on a year earlier, although sales in the division serving electronics firms fell below the level of the last two quarters. As well as cautious demand from some customers, the company said profits at BOC Edwards had been affected by the weak dollar.
BOC said it would look to offset the pressure with cost cutting, although it pointed out prospects for a larger division supplying oxygen and other gases by pipeline to the oil refining, chemicals and steel industries remained bright.
The process gas solutions arm achieved turnover of £353.4m (€510.5m), a rise of 16% on a year earlier and helping profits lift 11% to £49.1m (€70.9m).
Three major project wins by the division since November will result in BOC and its joint venture partners making investments worth £200m (€288.9m), it added.
The company’s largest division covering industrial and special products posted turnover of £430.1m (€621.3m) in the quarter, down 2% on a year earlier following the sale of BOC’s US-based packaged gas business. Operating profits rose by 6% to £74m (€106.9m).
Chief executive Tony Isaac said he was optimistic about prospects, following the 5% rise in turnover to £1.18bn (€1.7bn) in the three-month period.
He added: “Our strong performance in the first quarter was largely through organic growth with some help from acquisitions but limited impact from new plant start-ups.
“The new projects announced over the last few quarters will support accelerated growth in process gas solutions over the next two to three years.”
