gasworld’s Business Intelligence provides you with the latest analysis of Air Liquide’s Q1 2016 earnings report.
- Reported corporate sales growth turned negative for the first time in a year at -3% YoY in Q1 2016 to €3.9bn, but up 2% on a comparable basis.
- Gases & Services account for over 90% of corporate sales, with Engineering & Construction 5%, the newly formed Global Markets & Technologies 2%, and other businesses (principally welding and diving) 3%.
- Corporate operating income estimated to have fallen by around -5% YoY, including a significant currency impact – its weakest performance in recent years.
- On this basis, operating margin estimated to be lower than previous year at around 17%.
- Cost savings and efficiency measures continue to rise YoY, with efficiency gains of €63m in Q1 – principally in operational areas and balanced across business portfolio.
- Airgas merger proceeding on track with possible closing by late Q2, subject to regulatory approval of divestitures – confirmed synergies target of $300m in three years.
- Sales in Engineering & Construction down -30% YoY (-28% on comparable basis), while order intake down over -70% YoY. Global Markets & Technologies up +11%, with higher order intake YoY, but difficult environment continues in other activities, with sales down -6% in Q1 (welding -7% due to Western Europe).
- Corporate reported gearing up to 57% vs 53% prior year, driven by net investment, dividend increase and share purchases.
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