Rotork PLC Trading Update (1386I)
22 Novembro 2018 - 5:00AM
UK Regulatory
TIDMROR
RNS Number : 1386I
Rotork PLC
22 November 2018
Rotork plc
Trading update
Rotork plc ("Rotork"), the market-leading actuator manufacturer
and flow control company, issues the following trading update
covering the third quarter and the year to 28 October 2018.
We continue to anticipate a robust financial performance in 2018
and management expectations for the full year remain unchanged.
Group order intake in the third quarter decreased by 4.0%, or
2.0% on an organic constant currency (OCC) basis on the comparable
period, while revenue increased by 8.4% (+9.9% OCC), reflecting the
variation in the timing of project orders and deliveries compared
with 2017. Cumulative (to 28 October 2018) order intake was up 3.6%
(+7.0% OCC) with a 9.8% increase in revenue (+13.0% OCC) resulting
in a book to bill of 1.02. The order book at 28 October 2018 was
GBP204.1m, 6.0% (+6.9% OCC) higher than at 31 December 2017.
Q3 Cumulative YTD
Order intake Revenue Order intake Revenue
OCC(2) OCC(2) OCC(2) OCC(2)
Change Change Change Change Change Change Change Change
Controls -3.3% -1.3% 12.9% 14.9% 4.9% 8.8% 10.0% 13.9%
Fluid Systems -19.7% -17.6% 6.7% 8.4% -2.2% 1.0% 13.1% 16.1%
Gears -1.9% 0.9% -4.1% -2.6% 2.8% 5.5% 2.2% 4.7%
Instruments 11.9% 11.4% -0.1% -0.6% 6.2% 7.6% 7.8% 9.2%
Group -4.0% -2.0% 8.4% 9.9% 3.6% 7.0% 9.8% 13.0%
------- -------- ------- -------- ------- -------- ------- --------
The results for the third quarter reflect a continued
improvement in overall levels of activity, particularly in
downstream, led by the delivery of further phases of the large
projects in the Far East highlighted at the half year. Upstream was
lower than the comparative period as was the power market.
Industrial process markets continued the strong performance we saw
in the first half, whilst midstream and water showed modest growth
in the quarter compared with the slight decline in the first
half.
Geographically we saw the strongest growth in the Far East. The
Americas, Western Europe and the Middle East were similar to the
comparative period and Eastern Europe experienced a decline as a
result of project delivery timing.
Growth acceleration programme update
We continue to make good progress across the range of activities
encompassed in our growth acceleration programme. Within the
commercial excellence pillar, we have recruited a Group Strategy
and M&A Director to accelerate the development of our
end-market strategy and address the most attractive adjacencies,
and appointed a Group Engineering Director to bring a more uniform
approach to innovation and product development opportunities. Our
service organisation has grown as expected, with a further 15
engineers recruited in the third quarter. The transition from
product to market segment orientation remains on target for the
start of a phased introduction in 2019.
Under the operational excellence pillar we have now sold or
closed the three non-core business units identified in our half
year results and site improvement plans have been developed for
eight of our largest factories. Our tailored lean programme
training has been developed and is being deployed. Our new central
procurement team is now fully staffed and working on the second
wave of the programme, which focuses on higher-value components
used in the manufacture of our products, and which will drive the
savings to be generated in 2019.
As part of our talent pillar we have recruited a Talent
Acquisitions and Development Director. A coordinated approach to
recruitment and development of our key personnel will ensure we
identify and develop the next generation of leaders.
As part of our IT pillar, we have nearly completed the selection
process for our ERP implementation partner in preparation for the
first stage of the design and build programme.
We expect the second half restructuring costs of the growth
acceleration programme will be slightly lower than the first half
of the year at around GBP4m.
Financial position
The Group continues to be highly cash generative with a strong
balance sheet. Net cash at 28 October 2018 was GBP12.2m (net debt
of GBP12.6m at 31 December 2017).
Kevin Hostetler, Chief Executive, commented:
"Based on our performance to the end of October and anticipated
shipments in the remaining two months of the year, we continue to
anticipate a robust financial performance in 2018 and management
expectations for the full year remain unchanged. I am pleased with
the progress we have made across all four pillars of our growth
acceleration programme, where we have moved from consultation and
analysis to implementation and execution."
Enquiries:
Rotork plc Tel: +44 (0)1225 733 200
Kevin Hostetler, Chief Executive
Jonathan Davis, Finance Director
FTI Consulting Tel: + 44 (0)20 3727 1340
Nick Hasell / Susanne Yule
Notes
1. 2018 figures quoted are at actual exchange rates and 2017 are as previously reported.
2. OCC (organic constant currency) growth rates remove the
results of the business disposed of or closed during 2018 that were
not consistently in both periods' results and restate 2018 at 2017
exchange rates.
3. Third quarter results refer to the period from 1 July 2018 to
30 September 2018. Cumulative results refer to the period from 1
January 2018 to 28 October 2018.
4. Rotork will be announcing results for the year ending 31
December 2018 on Monday 4 March 2019.
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. Nothing in this Trading Statement should be construed
as a profit forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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