gasworld’s Business Intelligence provides you with the latest analysis of Air Liquide’s Q4 2015 earnings report.
- Corporate sales up 3% YoY in Q4 2015 to €4.2bn – slower growth than recent peak in Q2 – but sustained by solid sales growth and currency tailwind.
- Gases and services account for over 90% of corporate sales, with engineering and technology 6%, and other businesses (including welding) 4%.
- Corporate operating income estimated to be have risen by around 7.5%, helped by significant currency impact – again slower than previous quarter.
- On this basis, operating margin estimated to be trending flat at around 17.5%, and up on prior year.
- Cost savings and efficiency measures continue to accelerate – estimated to reach over €90m in Q4, and slightly up YoY, while in line with achieving the annual target. Principally in operational areas and balanced across business portfolio.
- New reporting alignment in place – created new Global Markets & Technologies (representing around 2% of sales).
- Airgas merger proceeding on schedule.
- Sales in Engineering & Construction down -23% YoY (-27% on comparable basis), but order intake remains resilient, although down sharply YoY.
- Difficult environment in other activities, with sales down -6% in Q4.
- Corporate reported gearing up to 57% vs 53% prior year, driven by net investment, dividend increase and share purchases.
- Reported ROCE over 10% vs cost of capital below 6%.
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