Portfolio

Spirax-Sarco profits rise despite sales growth decline

By Duncan Ferris

Date: Wednesday 13 Nov 2019

Spirax-Sarco profits rise despite sales growth decline

(Sharecast News) - Spirax-Sarco Engineering on Wednesday reported an increase in profit and left its full-year expectations unchanged, but also warned of a slowdown in sales growth.


The pump and steam-management system manufacturer said group operating profit for the 10 months ended 31 October was ahead of the same period last year, both on an organic basis and when the effects of acquisitions and disposals are included.

The company said that its organic sales growth rate in the four months to the end of October had dropped from the 8% achieved in the first half of the year, but remained ahead of struggling global industrial production growth.

The decline comes as the FTSE 100-listed company said trading at its Steam Specialties business has softened since June, particularly in the Europe, Middle East and Africa region.

However, sales momentum at Watson-Marlow Fluid Technology Group improved from the first half of the year, while Chromalox saw marginal growth despite facing strong comparatives from last year.

The company said the integration of Thermocoax, which it acquired for €158m in May, had continued to progress well as its overall performance remained in line with expectations.

"Whilst, as always, we have limited visibility due to the short-term nature of our order book, we have good diversification across market sectors and geographic regions and remain focused on our strategies for growth, which, together with the group's fundamental strengths, stand us in good stead," it said.

At 1035 GMT, the shares were up 0.8% at 8,280p.

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