Rotork PLC Trading update (7838J)
29 Abril 2022 - 3:01AM
UK Regulatory
TIDMROR
RNS Number : 7838J
Rotork PLC
29 April 2022
29 April 2022
Rotork Plc
Trading update
Encouraging order intake growth in the first quarter
Rotork plc ("Rotork"), the global flow control and
instrumentation group, today issues the following trading update
covering the first quarter period from 1 January to 3 April 2022
ahead of its Annual General Meeting to be held later today.
Trading update
Performance in the period was broadly in-line with our
expectations. Encouragingly, order intake (on an organic constant
currency basis, "OCC") was high-single digits above the 2021
comparator, with the Oil & Gas division reporting the highest
rate of order growth. Revenue was down mid-single digits
year-on-year on an OCC basis, reflecting continued component
availability challenges, the cessation of deliveries to Russia, and
reduced deliveries from our important Shanghai, China, facility
which particularly impacted the Water & Power division.
We are managing the supply issues from our Shanghai facility,
which is in a COVID-19 lockdown area and is currently closed. It
operated at a significantly reduced output from 15 March to 13
April and has been closed since. We currently anticipate a partial
re-opening in the coming days however there can be no certainty
that this will happen or it will remain open.
As previously reported, we continue to see elevated material
costs and disruption to supply routes. Additionally, we are
experiencing significant labour cost increases. We are managing
inflation through more frequent price increases and cost reductions
and anticipate these actions will largely offset the headwinds. We
are executing on the Growth Acceleration Programme and our
'enabling a sustainable future' initiative has momentum.
Rotork retains a strong balance sheet with net cash of GBP112.5m
at 3 April 2022 (GBP114.1m at 31 December 2021).
Ukraine conflict update
Rotork ceased deliveries to Russia at the start of March. Rotork
has no manufacturing presence in Russia and is suspending the
activities of its sales and service operations in the country in an
orderly manner, with a small number of employees being retained to
manage this process. Rotork is actively supporting humanitarian
relief efforts for the Ukrainian people. The Russia, Ukraine and
Belarus region, which is all serviced out of Russia, contributed
around 3% to group sales in 2021.
Outlook
The outlook for our end markets remains positive and the
recovery in oil & gas markets is continuing. Our order book is
at a record high and we are working hard to deliver on it in the
face of increased geopolitical and macroeconomic uncertainty and
continued supply chain disruption which is expected to result in an
even greater weighting to the second half. We remain committed to
delivering mid to high single digit revenue growth and mid 20s
adjusted operating profit margins over time.
Rotork will publish 2022 half-year results on Tuesday 2 August
2022.
Enquiries:
Rotork plc Tel: +44 (0)1225 733 200
Kiet Huynh, Chief Executive
Jonathan Davis, Finance Director
Andrew Carter, Investor Relations Director
FTI Consulting Tel: + 44 (0)20 3727 1340
Nick Hasell / Susanne Yule
About Rotork
Rotork is a market-leading global provider of mission-critical
flow control and instrumentation solutions for oil & gas, water
and wastewater, power, chemical, process and industrial
applications. We help customers around the world to improve
efficiency, reduce emissions, minimise their environmental impact
and assure safety. Rotork employs about 3,200 people, has
manufacturing facilities in 17 locations and serves 170 countries
through a global service network. Its shares have a premium listing
on the London Stock Exchange (symbol: ROR) and are a constituent of
the FTSE 250 index. For more information please visit
www.rotork.com .
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END
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