Interim Management Statement

RNS Number : 6984L

Spirax-Sarco Engineering PLC

11 May 2010

 



Spirax-Sarco Engineering plc	Charlton House Cheltenham Glos. GL53 8ER
News Release	Telephone:  [phone] Fax:  [phone] www.SpiraxSarcoEngineering.com

Tuesday 11^th May 2010

INTERIM MANAGEMENT STATEMENT

Spirax-Sarco Engineering plc, the world leader in the control and efficient use of steam and in peristaltic pumping, issues the following Interim Management Statement in respect of the period from 1^st January to 10^th May 2010, ahead of its Annual General Meeting today at 2.00pm.

Trading

Industrial Production indices have been recovering and show good advances against the steep declines in 2009.  We have seen a modest but steady improvement in demand since the autumn of 2009 that is generally widespread but varies considerably within geographic regions.  At the time of our results announcement in March, we reported a positive start to 2010.  This has continued with improving sales that in the four months through April were up 8% at constant currency, including a 2% gain from acquisitions, against sales in 2009 that progressively deteriorated until late summer.  The improving sales growth has been led by Watson-Marlow Pumps and in the steam business by Asia and the Americas, with EMEA flat.

Operating profit margins show a strong improvement over the first four months of 2009, reflecting the benefit of higher sales, a favourable product mix and last year's cost reductions coming through.  Material costs, although lower over the period, are rising and we anticipate this impacting the second half of the year.  We are increasing our investments in new product development and to further penetrate our markets, in line with our strategic plans to enhance our future growth and margin prospects.

Financial position

We continue to operate with a strong balance sheet; the Group had a net cash balance of £22 million at 30^th April 2010.  There has been no material change in the financial position of the Group during the period.  As we previously indicated, capital investment for the year is expected again to be at a high level, as we progress several major manufacturing projects to increase our efficiency and responsiveness, and to reduce operating and logistics costs.

Outlook

Overall news flow regarding the global recovery continues to be largely positive, with generally improving economic prospects and rising levels of industrial production.  However, the pace of recovery remains uneven as viewed across our markets, and in Europe in particular.  But, given no renewed weakness or significant negative currency impacts, we expect to make good progress in 2010.

Enquiries:

Mark E Vernon, Chief Executive

David Meredith, Director Finance

Tel:  [phone]

About Spirax Sarco

Spirax-Sarco Engineering plc is the world leader in both steam system management and peristaltic pumping. The Company provides a broad range of fluid control products, engineered packages, site services and systems expertise for its diverse range of over 100,000 industrial and institutional customers. The Company helps its customers to optimise production capacity, reduce energy costs and emissions, improve product quality and enhance the safety of their operations.  Spirax Sarco is headquartered in Cheltenham, England, has strategically located manufacturing plants around the world and employs approximately 4,200 people, of whom 1,200 are direct sales and service engineers.  Its shares have been listed on the London Stock Exchange since 1959 (symbol: SPX). Further information can be found at www.spiraxsarcoengineering.com

 

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