BOC's profit drop due to healthcare slump

22 August 1994 00:00  [Source: ICB]

BOC REPORTED a slight decline in operating profit to £323.6m ($498.8m) from £325.8m in the nine months to June 1994 due to a weaker performance from its healthcare business. Group sales rose 8.1% to £2.6bn from £2.4bn.

Gases business profits continued to improve with a 5.5% increase for the first nine months and a 10% rise for the last quarter, both year-on-year.

Industrial activity and demand improved especially the US and Australia, but pricing pressures have not abated. Margins were supported by benefits from restructuring begun this year.

Healthcare profits were 42% lower than a year earlier. All Ohmeda divisions except pharma products achieved better performances. The firm said year-on-year comparisons are still adversely affected by generic competition for Forane anaesthetic. BOC said the new Ohmeda anaesthetic Suprane continued to achieve increased market penetration.

Vacuum technology and distribution services reported better profits than a year ago after an exceptionally strong start to the current year.

BOC nine months to June 1994 results by division (£m)
Division	Sales	Change,%	Op profit	Change,%
Gases	1846.5	8.7	243.7	5.5
Healthcare	428.8	(3.1)	42.8	(42)
Vacuum & distribution	316.6	23.6	36.8	61.4
Corporate	-	-	0.3	*
Total	2591.9	8.1	323.6	(0.7.)
*year-earlier figure = loss of £2.1m ($3.2m)

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