French industrial gas maker Air Liquide (AIQUY.PK) Wednesday said its total revenue of the third quarter increased about 5 percent from last year, helped by strong activity levels, particularly in developing economies. The company also said it is confident in its ability to continue to generate steady growth of net profit for the full year.
In the third quarter, revenues, as published, grew 4.9 percent to 3.6 billion euros from 3.43 billion euros in the previous year. Adjusted for a negative currency impact, a moderately positive natural gas impact and sale of a European Electronics subsidiary, comparable sales growth was 6.6 percent.
Gas and Services unit revenues improved 5.9 percent to 3.22 billion euros and comparable growth was 7.7 percent. The company noted that the performance of Gas and Services reflected growth of 19 percent in developing economies due to strong domestic demand and the start-up and ramp-up of new facilities. Activity in the advanced economies continued to improve and improved 5 percent from a year ago.
Geographically, and on a comparable basis, Gas and Services revenues in Europe grew 4.3 percent to 1.62 billion euros. In Americas, the growth was 10.6 percent to 728 million euros and revenues from Asia-Pacific improved 12.5 percent to 791 million euros. In Middle East and Africa, comparable growth was 5.1 percent.
Benoît Potier, Chairman and CEO of the company said, "The 3rd Quarter is characterized by solid growth in Gas & Services sales, which is globally in line with performance in the previous quarter...In this context, and assuming normal economic conditions, Air Liquide is confident in its ability to continue to generate steady growth of net profit in 2011."
Meanwhile, revenues from Engineering and Construction declined 15.3 percent to 158 million euros, with a 14.4 percent drop on a comparable basis. The company attributed the revenue decline mainly to a re-allocation of Engineering and Construction resources towards Air Liquide internal projects.
During the quarter, the company signed 38 projects for a total investment of 535 million euros.
"In the face of an unsettled economic and financial situation, particularly in Europe with the tension over sovereign debt, the Group can rely on the robustness of its business model and its ability to adapt in pursuit of its long term development," the company said.
In Paris Exchange, Air Liquide shares closed Tuesday's regular trading at 92.12 euros, down 1.38 percent, on a volume of 792 thousand shares.
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