Industrial gases group BOC was upbeat about the future despite the uncertain outlook at its troubled semiconductors business.

Dismal conditions in the chip-making industry have continued to put pressure on 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 £114.8m after a rise in turnover of three per cent to £1.04bn in the three months to September 30.

BOC has its largest UK base on Teesside where it operates a gas supplies depot and hydrogen supply plant.

During the quarter, all the company's businesses achieved improved turnover and profits - including the BOC Edwards division, which has its headquarters at Crawley, Sussex.

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

While there was some revival of demand for semiconductor equipment in the second half of 2002, BOC said order intake had softened recently.

It added: "BOC remains confident of the longer-term growth prospects in the semiconductor business. However, the timing of a sustained upturn in the industry is still uncertain."

Across the year, the pressure on BOC Edwards was shown by a fall in annual operating profits to £26.1m from £78.8m a year earlier.

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

The Windlesham, Surrey-based company 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.

Excluding BOC Edwards and using constant exchange rates, operating profits rose 11 per cent in the financial year.

The company added: ''Despite the uncertain economic environment, BOC is well placed for the current year.''