Air Liquide confirms full-year targets after in-line quarter

By Olivier Cherfan

(Reuters) -French industrial gases supplier Air Liquide reported third-quarter revenue in line with market expectations and confirmed its full-year targets on Wednesday, benefiting from growth in its healthcare division, the Americas and Asia.

Air Liquide reaffirmed its expectations of a further increase in its operating margin and a recurring net profit growth at constant exchange rates in 2024. It is targeting an increase of 320 basis points (bps) in operating margin by 2025 as part of a 3 year strategic plan.

Paving the way for future growth, our investment momentum is particularly strong”, Chief Executive Officer François Jackow said in a statement.

The company, which supplies gases such as oxygen, nitrogen and hydrogen to factories and hospitals, said its comparable revenue rose 3.3% to 6.76 billion euros ($7.30 billion) in the July-September period, in line with the consensus from analysts polled by Vara Research.

Air Liquide said that its operating margin in the first nine months of the year improved by 100 basis points, excluding the energy impact.

In a research note, J.P. Morgan, which kept its “neutral” rating on the stock, described the performance as resilient, noting that strong pricing, especially in the Industrial Merchant business, and the company’s focus on cost efficiencies had contributed to the margin improvement.

Shares in Air Liquide were down 1% in mid-morning trading.

($1 = 0.9258 euros)

(Reporting by Olivier Cherfan; Editing by Matt Scuffham)