Air Liquide Net Income Rises 11.1% in First Half

The Tip Desk · June 30, 2011 · 2 min read

The company reported a net income of 750 million euros for the period ending June 30, 2011.

Air Liquide reported a net income of 750 million euros for the first half of 2011, an increase of 11.1%. Net earnings per share rose 10.4% to 2.65 euros. The company attributed its operational performance to a favorable market orientation and the ability to maintain stability despite disruptions in North Africa and Japan.

Growth was driven by strong performance in the Electronics sector, which saw sales rise 32.3% in Europe and 14.8% globally. This trajectory was supported by the start of several special and carrier gas contracts and significant equipment sales in China and Japan. In the Americas, revenue grew 10.1% to 1,409 million euros, with North American demand increasing by nearly 9%.

Profitability metrics also improved. The ROC to revenue ratio reached 20.7%, an increase of 110 basis points excluding natural gas effects compared to the first half of 2010. The company cited confirmed price increases in Industrial Merchant, margin recovery in Health and Electronics, and new efficiencies as the primary drivers. In Asia-Pacific, ROC grew 21.6% to 249 million euros.

Capital expenditure and investment remained a central focus under the ALMA 2015 program. Investment decisions for the first half of 2011 totaled 970 million euros, a 20% increase over the first half of 2010. Of these decisions, 58% were located in developing economies. Gross investments for the period rose 5.0% to 871 million euros. The company also maintained a 12-month opportunity portfolio of projects exceeding 10 million euros, valued at 3.7 billion euros.

Strategic expansion included entering the Mexican market through a site takeover and signing a new oxygen contract in Ukraine. The company also expanded its home healthcare presence through the acquisition of ADEP Assistance in France and Licher in Germany. Total acquisitions for the semester amounted to 61 million euros.

Cash flow from operational activities reached 923 million euros. This figure followed a net working capital variation of 418 million euros, influenced by growth in Gas and Services, higher stocks in Welding-Cutting, and rising energy costs. Net distribution to shareholders rose to 670 million euros from 599 million euros in the first half of 2010, reflecting an 11.4% increase in the 2010 dividend per share.

Net debt stood at 5,580 million euros as of June 30, 2011, a slight decrease compared to June 30, 2010. The net debt to equity ratio improved to 62.5% from 68% a year earlier.

Air Liquide expects to continue the regular growth of its net income throughout 2011 in a normal environment.