gasworld’s Business Intelligence provides you with the latest analysis of Air Liquide’s Q3 2016 earnings report.
- Corporate sales up +24% YoY in Q3 2016 to €5.1bn. This growth has been substantially driven by full consolidation of the acquired Airgas business.
- Gases and Services now account for over 94% of corporate sales (post-Airgas). The Engineering & Construction division accounts for 2%, the newly formed Global Markets & Technologies 1% and other businesses 4%.
- Corporate operating income is estimated to have risen less than sales, due to lower profitability of the acquired Airgas business and the Q3 profile of the Air Liquide business. As a result, corporate operating margin is also estimated to have slipped.
- Cost savings and efficiency measures continued to rise YoY, at over €80m in Q3, excluding Airgas. This increase is principally in operational areas and procurement, with a further 10% through restructuring.
- The Airgas integration is on track, with the full merger of operations from 1st October. First cost synergies were realised and are scheduled to be completed by the end of 2018.
- The sale of certain US assets, related to the Airgas acquisition are largely completed. The sale of divestments to MATHESON for $780m price generated a net gain of $250m.
- Reported sales in Gases & Services were up +30% in Q3. Engineering & Construction was down -52% YoY, partly due to prior year sale of one Large Industries project (although order intake improved sequentially and was still -30% YoY in Q3). Global Markets & Technologies increased +10%, with order intake also up +10%. Other activities saw sales down -10% in Q3 (welding -11% due to West Europe).
- Strong positive cash flow, excluding Airgas.
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