Air Liquide costs under control in 2007 - UBS

27 February 2007 10:38  [Source: ICIS news]

LONDON (ICIS news)--Air Liquide’s 6.3% growth in 2006 earnings before interest, tax, depreciation and amortisation (EBITDA) above a 5.7% rise in sales suggests the company’s costs are back under control, said UBS in a note to clients on Tuesday.

 

The French industrial gases group reported a full year EBITDA of €2.567bn ($3.4bn), marginally higher than the UBS estimate of €2.556bn.

 

UBS said it expected Air Liquide to see double-digit earnings per share (EPS) growth in 2007 driven by acquisitions of joint venture stakes.  

 

The bank maintained its 'neutral' rating on Air Liquide shares and kept the price target at €185.

 

Air Liquide said it would be targeting revenue growth of between 8-10% progressively over the next five years, which should lead to a 10-13%/year increase in net profit.

 

The group’s shares dropped nearly 2% in morning trading in Paris to €177.84 (09:35 GMT).

 

($1 = €0.76) 

By: Mark Watts
+44 20 8652 3214

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