Interim Management Statement

RNS Number : 4449W

Rotork PLC

19 November 2010

 



19 November 2010

Rotork p.l.c.

Interim Management Statement

Rotork plc, the market leading actuator manufacturer, today issues its Interim Management Statement covering the period from 1 July to 19 November 2010.

Order intake in the period remained strong, with the third quarter 28% higher than the prior year, a new record.  Cumulative order intake to the 31 October was 17.3% ahead of 2009 with the resultant order book standing at £151m on that date.  Revenue and margins have been consistent with management expectations and the full year profit outlook remains in line with previous guidance and market consensus.    

Project and quotation activity continue to be robust, however, there are some regional and end market variations.  Oil and gas infrastructure investment in upstream, midstream and downstream markets is positive.  Water and power are regionally focused and we anticipate continued weakness in Europe with increased activity in Asia.

Rotork Controls continues to see increased demand for its products.  Order intake for the third quarter was 18.5% higher than the comparative period, a record quarter.  Asia remains very active, particularly China.  We also benefited from increased activity in India, Russia, USA and Holland.

Rotork Fluid Systems benefitted from the recent acquisitions of Flow-Quip and Hiller to produce record input in the third quarter, 47.6% ahead of the same period in 2009.  Excluding these acquisitions, growth was 28.1%.  A number of regions saw increased order input driven mainly by activity in the Middle East although we also saw improved performance from Russia,  Sweden, Canada and Venezuela.  As expected, we have seen margin pressure in this business in the period.  However, as activity levels have increased, pricing pressures have eased and returned to more normal levels. 

Rotork Gears has also seen increased activity, with input in the third quarter up 50% on the prior year.  Sourcing initiatives to mitigate raw materials pricing pressure are ongoing and this is having a positive impact on maintaining margins.

Financial Position

The Group continues to maintain a strong balance sheet and has benefited from strong operating cash flows.

Material Events

There have been no material events or transactions during the period.

Outlook

The strong order intake and current level of project and quotation activity give us confidence in the full year outcome and support expectations for further progress in 2011.

Notes

1.    Third quarter refers to the period 30 June to 3 October.

2.    2010 figures quoted are at actual exchange rates and 2009 are as previously reported.

3.    Rotork will be announcing its preliminary results for the year ending 31 December 2010 on 1 March 2011. 

For further information, please contact:

Rotork p.l.c.                                                                                       Tel: [phone]

Peter France, Chief Executive

Jonathan Davis, Finance Director

Financial Dynamics                                                                         Tel: [phone]

Jon Simmons

 

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