TIDMROR
RNS Number : 2764R
Rotork PLC
16 November 2012
16 November 2012
Rotork plc
Interim Management Statement and Acquisition
Rotork p.l.c ("Rotork"), the market leading actuator
manufacturer and flow control company, today issues its Interim
Management Statement covering the period from 1 July to 15 November
2012 and announces the acquisition of Soldo srl, a switch box
manufacturer, within its Instruments division.
Order intake in the period remained strong, with the third
quarter at record levels and 24.9% higher than the prior year.
Cumulative order intake to 28 October was 20.4% ahead of last
year.
Revenue in the third quarter was good, 9.9% higher than the
prior year, against a strong comparative period in 2011.
Notwithstanding the headwind caused by the strengthening of
sterling in the second half, cumulative revenue to 28 October was
17.0% ahead of the prior year. As last year, we anticipate a strong
fourth quarter in terms of revenue as projects are delivered out of
the order book.
The order book at 28 October was GBP190.8m, 16.5% higher than
the same point last year. Due to our continued success on major
international projects, we have a greater proportion than normal of
our current order book due to be delivered over a longer time
frame, with deliveries in 2013 and, in a number of cases, in
2014.
The Group continues to generate industry leading margins and we
anticipate these will be higher in the second half than the first
half, with full year margins slightly lower than the prior year.
Operational gearing has been beneficial, however changes in
divisional mix, with the record performance of Fluid Systems, and
costs related to the introduction of a number of new products have
reduced Group margins.
Rotork Controls
Despite the continued weakness of power markets in India and
China, cumulative order intake to 28 October was 8.3% ahead of the
prior year. Third quarter order intake was 9.3% ahead of the same
period last year. A number of markets are performing well with
Russia, North America and Australia particularly strong. We
continue to benefit from our broad product portfolio and diverse
end market and geographic exposure. This year we have introduced a
number of new products, including the latest version of our IQ
series of electric actuators. On a divisional basis, Controls has
incurred the highest level of costs related to new product
introductions, the benefits of which we will see through 2013 and
beyond.
Rotork Fluid Systems
This was the fastest growing division and order intake in the
third quarter was 47.2% higher than the same period last year.
Cumulative order intake to 28 October was up 32.7% on the prior
year. The demand for our products remains strong with North and
South America, Middle East and China seeing the greatest growth.
The strength of the LNG market in Australia has also benefited
Fluid Systems.
Rotork Gears
Order intake has continued to be positive, with the third
quarter 21.0% higher than the same period last year. Cumulative
order intake to 28 October was 22.4% ahead of the prior year. We
continue to win new customers and this is delivering good growth
and, as in the other divisions, we have added new products to our
product portfolio. Russia and China remain key markets for us as we
continue to grow our customer base.
Rotork Instruments
The integration of Rotork Fairchild, acquired in November 2011,
is progressing well and the business has performed in line with
expectations. As part of our stated strategy of developing the
Instruments division, we are today announcing the acquisition of
Soldo srl, a switch box manufacturer based in Italy with sales
operations in USA and Singapore, for up to GBP21.5m. This
acquisition adds a second high-quality business to our Instruments
division and will strengthen Rotork's presence in the wider flow
control market.
Financial position
The Group continues to be highly cash generative and maintains a
strong balance sheet with a high return on capital employed. Net
cash balances at 28 October were GBP58.3m. The acquisition
announced today has been funded out of cash reserves.
Outlook
Based on the strong performance year to date, our record order
book and diverse end market exposure, the Board continues to expect
further progress in the full year, with margins slightly lower than
those seen in 2011.
Conference call
Peter France, Chief Executive, and Jonathan Davis, Finance
Director, will be hosting a conference call for analysts and
investors at 9.30am 16 November. To join the call, please dial in
to the following number:
UK number +44 (0)203 140 0668
UK toll free number 0800 368 1950
Participant PIN 801643#
A recording will be available shortly after the conclusion of
the call on the following numbers:
UK number +44 (0)20 3140 0698
UK toll free number 0800 368 1890
US toll free number +1 877 846 3918
Conference reference 388057#
Notes
1. Third quarter refers to the period from 1 July to 30 September 2012.
2. 2012 figures are quoted at actual exchange rates and include
the contribution from acquisitions made in 2011. 2011 figures are
as previously reported.
3. Cumulative results refer to the period 1 January to 28 October 2012.
For further information, please contact:
Rotork p.l.c. Tel: 01225 733200
Peter France, Chief Executive
Jonathan Davis, Finance Director
FTI Consulting Tel: 020 7269 7291
Nick Hasell
This information is provided by RNS
The company news service from the London Stock Exchange
END
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