BOC hit by 22% slide in turnover
Wednesday 10 February 1999
Including joint ventures and associates, and excluding businesses that have been sold, turnover at the industrial gases group was still down 8 per cent and operating profit down 10 per cent at pounds 104.4m.
The long-term restructuring and cost-saving programme that hammered last year's profits is on track to start contributing pounds 50m to profit in the current year and pounds 120m a year in due course, the chief executive Danny Rosencrantz said yesterday.
Margins in the industrial gases division remain steady in spite of a drop in demand from the steel industry, and its operating profit was down just 1 per cent at pounds 94.4m.
There are signs that the vacuum technology division which supplies the worldwide semi-conductor industries has turned the corner in spite of a slump in profits to just pounds 1.6m.
The distribution business produced an operating profit of pounds 7.9m, an improvement of 27 per cent.
The adverse impact of the strong pound is visibly fading, and should be cut to pounds 6m if rates remain at their current level. But the market did not entirely share the company's confidence and the shares fell 67p to 796p.
The first quarter figures were below most forecasts and significantly below some.
Even the optimists were disappointed at the severity of competition in the United States and the poor returns in vacuum technology and could see no real sign of a return to easier business conditions.
Forecasts for the current year have been downgraded from pounds 415m to around pounds 390m, and earnings of 54.3p, and pounds 415m and 57.5p next year.
Even after the setback yesterday the shares are trading on 14-times future earnings, which looks high enough in current conditions.
- 1 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 2 Black Mass trailer: Johnny Depp might have started making good films again
- 3 Jacob Lescenski and Anthony Martinez: Straight student asks gay friend to High School prom and makes a million Twitter friends
- 4 Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Top 20 misconceptions people believe are true
Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
Head transplant: man will be attached to new body in under an hour and aim is immortality, doctor says
Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
The sickening truth about food banks that the Tories don't want you to know
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...