BOC weighed down by US legal actions

BOC, the industrial gases business, disappointed investors yesterday with news that sales in its semiconductor division had dropped in the third quarter and that increasing numbers of welders were taking legal action against the company in the US.

BOC, the industrial gases business, disappointed investors yesterday with news that sales in its semiconductor division had dropped in the third quarter and that increasing numbers of welders were taking legal action against the company in the US.

The company, whose gases are used in industries from steel making to food processing, reported a 7 per cent drop in pre-tax profits over the past nine months. The fall was mainly caused by a £79.8m writedown on the sale of its loss-making packaged gas business to Airgas last month. Excluding this, pre-tax profits rose 19 per cent to £352m over the nine months, with turnover up 7 per cent at £3.4bn.

But orders at its BOC Edwards division, its semiconductor unit, were below sales in the second quarter. Shares in BOC fell nearly 4 per cent during the day as analysts were concerned that growth in BOC Edwards had hit its peak. The shares closed 2.1 per cent down at 913.5p.

Tony Isaacs, the chief executive of BOC, said the figures were still ahead of last year's and that he expected sales to remain strong in the fourth quarter. "This business is improving and we believe the orders for the fourth quarter will be higher than the third quarter," he said.

Legal action from welders who claim that BOC fumes have caused the onset of Parkinson's disease has overshadowed the group for months. It said the number of plaintiffs suing the company had risen from 8,500 to 9,500. The claims are thought to amount to nearly £1bn. But BOC is vigorously defending the action. "There have been no changes in any medical evidence in the case. Some of the trials have been put back, some of them get dismissed. The next scheduled case is in September, but we don't even know if that will go ahead," Mr Isaacs said.

BOC also announced a contract to supply hydrogen to BP and a 15-year deal to supply gases to Corus.