Air Liquide Posts Q1 Sales Up 5%

French industrial gases group Air Liquide on Monday reported higher quarterly sales, and predicted net profit would grow this year as bright prospects in emerging markets offset the gloom in mature ones.

Air Liquide said the highest level of activity over the last 15 months was recorded in March. The group posted a 5.2% rise in revenues to €3.15 billion for the quarter on a reported basis. Its gas and services business saw an 8.3% rise in revenues to €2.76 billion for the period, reflecting an increase in consumption by customers.

The first quarter was marked by "a return to growth in a contrasting environment", Air Liquide said. "In this context, and barring a major economic upset, Air Liquide expects continuous growth in net profit in 2010, in line with its long-term performance."

The group said the division continued to show a contrast between mature economies where growth was limited and emerging economies which showed stronger increases. Gas and services revenue grew by 1.8% in Europe to €1.49 billion, and by 24.8% to €558 million in the Asia-Pacific region.

The group made investments in China and India during the first quarter, Air Liquide said. First-quarter operating margin was slightly above the 2009 average thanks to ongoing cost and cash discipline, Air Liquide said.

The group is continuing to target over €200 million in efficiency gains in 2010, with over 50% of this to come from industrial and logistics, 33% from globalization of purchases and the rest from reorganizations and head office cost cuts, the company said.