BOC, the industrial gases group, says it is well placed for the new financial year despite the uncertain outlook at its semiconductors business.

Dismal conditions in the chip-making industry have continued to put pressure on Crawley-based BOC Edwards, although the company said its wider outlook was good.

It has been buoyed by results for its most recent quarter showing underlying profits had held firm on a year earlier at £114.8 million after a rise in turnover of three per cent to £1.04 billion in the three months to September 30.

All the company's businesses achieved improved turnover and profits, including the BOC Edwards division.

However, the improvement in Edwards' operating profits from £5 million to £9 million has not brought confirmation of an upturn in fortunes.

There was some revival of demand for semiconductor equipment in the second half of the year but BOC said order intake had softened recently.

It said it remained confident of longer-term growth prospects in the semiconductor business.

However, the timing of a sustained upturn was still uncertain.

Across the year, the pressure on BOC Ed-wards was shown by a fall in annual operating profits to £26.1 million from £78.8 million a year earlier.

This contributed to a group-wide fall in bottom-line pre-tax profits to £335.3 million from £362.2 million, although the company was hit by £47 million worth of restructuring charges and adverse currency movements.

BOC said last year's restructuring, which saw 1,500 jobs cut worldwide, and a number of acquisitions had still put it in a strong position.