Rotork PLC Trading Update (5799F)
13 Novembro 2015 - 5:00AM
UK Regulatory
TIDMROR
RNS Number : 5799F
Rotork PLC
13 November 2015
13 November 2015
Rotork plc
Trading Update
Rotork p.l.c ("Rotork"), the market leading actuator
manufacturer and flow control company, issues the following trading
update covering the period from 1 July to 12 November 2015.
The trading environment has remained challenging across most of
our key markets and geographies; however our expectations for the
full year remain unchanged from the guidance issued on 17 September
2015.
Quotation activity in the third quarter was similar to the prior
year but order intake was 17.2% lower (-17.3% OCC). Cumulative
order intake in the ten months to 25 October was 12.5% lower
(-15.1% OCC) than the same period in 2014. Revenue for the third
quarter was 18.1% lower (-18.6% OCC) than the comparable period
with cumulative revenue 7.1% lower (-10.0% OCC) than the prior
year. The order book at 25 October was GBP185m, a 13.3% reduction
(-13.1% OCC) compared with the same point last year.
Although our quote activity has remained encouraging, the timing
of order placement and product delivery remains difficult to
forecast.
We continue to implement our previously announced cost
management initiatives and we are on track to achieve the savings
indicated at the time of our half year results.
Today we are announcing the small acquisition of Eltav which
provides wireless technology for the valve industry and will
strengthen our wireless offering.
Rotork Controls
Order intake in the third quarter was down 17.5% (-15.9% OCC) on
the same period last year. Cumulative order intake was down 13.3%
(-13.2% OCC) on the prior year. The oil and gas market continues to
be impacted by reduced levels of activity, with projects moving
slowly or being postponed into next year. There are positive signs
in power related markets, with recent project approvals supportive
of our expectation of improved activity in 2016. We continue to
expand our end market exposure as we look for areas of increased
activity. Our products are often mission critical and this supports
our after-market business which continues to see good levels of
growth.
Rotork Fluid Systems
Trading in the period continued to be very challenging with
order intake in the third quarter down 26.9% (-26.0% OCC) on the
same period last year. Project deferrals and cancellations due to
oil companies reassessing the feasibility of planned capital
projects continue to impact all geographic regions of the business.
We are planning for an extended period of weakness but see
opportunities in areas where investment is still required, such as
safety and cost reduction initiatives by our customers. Our global
sales network continues to play an important part in winning
projects and providing local support.
Rotork Gears
Third quarter order intake was down 4.2% (+0.1 OCC). Cumulative
order intake was down 3.0% (-1.3% OCC). All regions are performing
at similar levels to the prior year with the exception of Asia,
reflecting the weakness in the oil and gas market and the difficult
trading environment in China. The integration of Roto Hammer,
acquired in September, is progressing well.
Rotork Instruments
The Instruments division continues to grow by acquisition and
organically. Order intake in the third quarter was 7.0% higher
(-12.5% OCC). Cumulative order intake was up 37.8% (-8.9% OCC) on
the prior year. The division's results for the third quarter
include first-time contributions from M&M, acquired on 3
August, and Bifold, acquired on 27 August. Good progress is being
made on the integration of both companies. Central to the strategy
of this division is to increase the geographical spread of the
business and progress is being made in this regard.
Financial position
The Group continues to be highly cash generative and maintains a
strong balance sheet with a high return on capital employed. Net
debt at 25 October was GBP86m.
Outlook
Our expectations for the full year remain unchanged from our
guidance of 17 September 2015 that, based on current exchange
rates, revenue for the year will be in the range of GBP530-GBP555m
with adjusted operating profit in the range of GBP120m-GBP130m.
For further information,
please contact:
Rotork p.l.c. Tel: 01225 733200
Peter France, Chief Executive
Jonathan Davis, Finance
Director
FTI Consulting Tel: 020 3727 1340
Nick Hasell / Susanne
Yule
Notes
1. 2015 figures quoted are at actual exchange rates and 2014 are
as previously reported.
2. OCC (organic constant currency) growth rates remove the
results of the businesses acquired during 2014 and 2015 that were
not consistently in both periods' results and restate 2015 at 2014
exchange rates.
3. Third quarter results refer to the period from 1 July to 27
September 2015. Cumulative results refer to the period from 1
January to 25 October 2015.
4. Rotork will be announcing its results for the period ending
31 December 2015 on 1 March 2016.
5. This announcement contains certain forward-looking statements
with respect to the operations, performance and financial condition
of the Group. By their nature, these statements involve uncertainty
since future events and circumstances can cause results and
developments to differ materially from those anticipated. The
forward-looking statements reflect knowledge and information
available at the date of preparation of this announcement and
Rotork undertakes no obligation to update these forward-looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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