Signature of the merger agreement for the acquisition of
Airgas
Regulatory News:
Air Liquide (Paris:AI):
2015 Key Figures
2015 Highlights
- Group revenue: 16,380 million
euros
+6.7%
- Acquisition of Airgas
(United States): approval processes ongoing.
- Operating margin upat
17.6%
+50 bps
- Further acquisitions in Home
Healthcare in Europe and in Hygiene.
- Net profit (Group share):1,756
million euros
+5.5%
- New contracts in growing markets:
South Africa, China, Colombia and semi-conductors in
Asia-Pacific.
- Proposed 2015 dividend of2.60
euros per share
+2.0%
- Start-up of the hydrogen site in
Yanbu: Saudi Arabia.
- Innovation and Technologies: ITER
project; CO2 cold capture system - Cryocap™ in France; creation of
the Global Markets & Technologies activity.
Commenting on the 2015 results, Benoît Potier, Chairman and
CEO of Air Liquide, stated:
“The Group achieved a solid performance, delivering once
again an increase in revenue, operating margin and net profit, in
the context of slower global growth in 2015. Growth in Gas &
Services sales improved quarter after quarter.
Business growth was driven by momentum in Healthcare and
Electronics, and in Large Industries by higher volumes from new
contracts. From a geographic perspective, it was driven by Europe’s
progressive recovery and by the developing economies.
Europe benefited from the good development in Healthcare and
an improvement in certain industrial sectors in the 2nd
half of the year. In North America, the year was marked by a
slowdown in sectors related to oil and gas production and metal
fabrication. The progression in activity observed in Asia-Pacific
was driven by Japan’s resilience and the persistence of sustained
growth in China.
Globally, the Group delivered growth above that of its
market, in a context of favorable exchange rates, which positive
effect slowed down during the year, and decreased energy
prices.
Over the year, as a result of efficiencies close to € 300
million and investment decisions totaling € 2.4 billion, the Group
improved its competitiveness and sustained its future growth. At
the same time, the signature of the merger agreement to acquire
Airgas in the United States and the rollout of an innovation
strategy, reinforced by the creation of the Global Markets &
Technologies activity, mark major steps in the Group’s development
and transformation.
Excluding the impact of Airgas acquisition and financing, and
assuming a comparable environment, Air Liquide is confident in
its ability to deliver another year of net profit growth in
2016.”
2015 consolidated revenue reached €
16,380 million, an increase of +6.7% on a reported
basis compared with 2014 and of +3.3% on a comparable basis1. The
positive currency impact (+6.0%) was partly offset by the negative
energy impact (-2.6%). This favorable currency translation effect
slowed over the course of the year.
Gas & Services revenue for 2015, which reached €
14,752 million, rose +6.9% on a reported basis and
+3.8% on a comparable basis. Of note, a sequential improvement in
Gas & Services sales quarter after quarter on a
comparable basis, reaching an increase in the 4th quarter of 2015
of +4.8% versus the 4th quarter of 2014.
Developing economies posted solid growth in 2015, with
Gas & Services revenue up +10.2% on a comparable
basis.
Globally, the growth in Gas & Services activities
in 2015, on a comparable basis, is satisfactory given
the trend in global industrial production, to which a portion of
the Group’s activities is linked:
- Large Industries revenue
increased +5.2% in 2015. After a 1st quarter marked by
temporary plant turnarounds of several customers, the following
quarters benefited from new start-ups and ramp-ups, primarily in
Germany, Benelux, China, and Saudi Arabia. For the 4th quarter,
Large Industries sales rose +9.3%. Hydrogen volumes rose
sharply in 2015, notably due to the ramp-up of the Yanbu site,
while demand for air gases remained high in Asia.
- Industrial Merchant, down
-1.3%, remains contrasted. In North America, volumes were
affected by moderate manufacturing activity and a slowdown in
demand for oil services and related industries. In Asia-Pacific,
sales were down in Australia against the backdrop of a weak mining
sector. Sales continued to grow in China, thanks to air gases
volumes in particular. Europe showed slight improvement in the 4th
quarter due to higher bulk volumes, in particular in Germany and
Benelux. The price effect for the year was slightly positive at
+0.6% in a low inflation environment globally.
- Electronics revenue was up a
robust +11.5%, driven by vigorous sales in Japan, China, and
Taiwan. All of our product lines grew, in particular advanced
materials, which include the ALOHA™ line and the Voltaix offer,
which progressed more than +30%. Through the 4th quarter of
2015, Electronics continued to post double digit growth excluding
equipment and installation sales.
- Healthcare, up a substantial
+7.5%, continued to progress in 2015 in both advanced and
developing economies. It was driven by sustained ongoing demand in
Home Healthcare services, despite significant price pressure in
Europe, as well as particularly dynamic Hygiene sales
(+17.3%). The pursuit of targeted acquisitions also
contributed to this solid performance.
Engineering & Construction revenue, at € 775
million, was stable (-0.7%) on a comparable basis versus
2014. The order intake, at € 936 million, has resisted
well.
Revenue from ‘Global Markets & Technologies’, which
focuses on the new markets requiring a global approach,
particularly those related to the energy transition, as well as
those related to extreme cryogenics, space, aerospace and new
industrial gas applications for the maritime sector, reached €
292 million. The increase on a comparable basis versus 2014 was
+11.4%.
_______
Operating income recurring was up +9.8% to € 2,890
million. The Group operating margin, which benefited from a
high level of efficiency gains (€ 298 million)
and lower energy prices, improved to 17.6% (+50 basis
points). Net profit (Group share) stood at €
1,756 million, a +5.5% increase on a reported
basis.
Cash flow (before WCR) rose by +7.0%. Net
debt was € 7,239 million on December 31, 2015. The
debt to equity ratio remained moderate at 56.7%. The
return on capital employed after tax (ROCE) stood at
10.3%. Excluding the one-off impact of an Engineering &
Construction project, adjusted ROCE was unchanged at
10.8%.
_______
Air Liquide’s Board of Directors, which met on February
15, 2016, approved the audited financial statements for fiscal year
2015. The Group’s statutory auditors are in the process of issuing
an unqualified opinion on the financial statements.
At the next Annual General Meeting of Shareholders, the Board of
Directors will propose the payment of a dividend of
2.60 euros per share, an increase of +2.0%. The
ex-dividend date has been set for May 23, 2016 and
the payment scheduled for May 25, 2016.
The Board also approved the draft resolutions that will be
submitted to the Annual General Meeting on May 12, 2016, and in
particular:
- the reappointment, for a six year term,
of the accounting firm Ernst&Young et Autres to serve as the
incumbent statutory auditor, and the attribution of a term to
Pricewaterhouse Coopers Audit.
- the reappointment, for a four year term
of office, of Mrs. Karen Katen, a member of the Board of Directors
since 2008, and of Mr. Pierre Dufour, Senior Executive Vice
President and a member of the Board of Directors since 2012.
- the appointment, for a four year term,
of Mr. Brian Gilvary, a British citizen, CFO of BP since 2012. He
will be able to contribute to the Board with his knowledge of the
world of oil & gas, his financial expertise, as well as the
global vision of a large international group.
The Board of Directors duly noted that the term of office of Mr.
Paul Skinner ended on December 31, 2015, due to the emergence of a
conflict of interest related to the decision of Air Liquide to
appoint PriceWaterhouse Coopers (PwC) as statutory auditor. Mr.
Skinner was sincerely thanked for his strong contribution to the
work of the Board and its sub-Committees.
Following the Annual General Meeting, the Board of Directors
would be composed of 12 members, of whom 11 are elected. Nine of
the eleven members elected by the Annual General Meeting are
considered independent as defined in the internal regulations. The
Board would include five women and six board members whose
nationality is other than French.
In addition, the Board set executive compensation for 2015 and
2016, details of which will be published on the Air Liquide
corporate website. The components of executive compensation for
2015 will be submitted to the shareholders for their opinion, as
last year, under two specific (“Say on Pay”) resolutions.
Lastly, in order to align the age limit for the Chairman of the
Board of Directors and of the CEO with current market practice, the
Board has decided to propose that the company bylaws be amended for
the maximum age limit of the Chairman of the Board of Directors to
be raised to 70 years old and that of the CEO to the legal age
limit, currently set at 65 years old.
_______
Benoît Potier also comments on the Group’s
2015 results in a video interview,available in French and in
English at www.airliquide.com.
Follow the announcement of 2015 results live
on Twitter - hashtag #ALresults
Throughout the year, follow the latest Air
Liquide news on @AirLiquideGroup
_______
UPCOMING EVENTS
2016 1st Quarter RevenueTuesday, April 26,
2016
Annual General MeetingThursday, May 12, 2016
2016 1st Half ResultsMonday, August 1,
2016
World leader in gases, technologies and services for Industry
and Health, Air Liquide is present in 80 countries with more than
50,000 employees and serves more than 2 million customers and
patients. Oxygen, nitrogen and hydrogen have been at the core of
the company’s activities since its creation in 1902. Air Liquide’s
ambition is to be the leader in its industry, delivering long-term
performance and acting responsibly.
Air Liquide ideas create value over the long term. At the core
of the company’s development are the commitment and constant
inventiveness of its people.
Air Liquide anticipates the challenges of its markets, invests
locally and globally, and delivers high-quality solutions to its
customers and patients, and the scientific community.
The company relies on competitiveness in its operations,
targeted investments in growing markets and innovation to deliver
profitable growth over the long-term.
Air Liquide’s revenues amounted to € 16.4 billion in 2015, and
its solutions that protect life and the environment represented
more than 40% of sales. Air Liquide is listed on the Paris Euronext
stock exchange (compartment A) and is a member of the CAC 40
and Dow Jones Euro Stoxx 50 indexes.
www.airliquide.comFollow us on Twitter
@AirLiquideGroup
---------------------------------
1 Adjusted for currency, energy prices (natural gas and
electricity) and significant scope
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160215005673/en/
Air LiquideCorporate CommunicationsAnnie Fournier,
+ 33 (0)1 40 62 51 31orCaroline Philips, + 33 (0)1 40 62 50
84orInvestor RelationsAude Rodriguez, +33 (0)1 40 62 57
08orErin Sarret, +33 (0)1 40 62 57 37orLouis Laffont, +33 (0)1 40
62 57 18
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