Trading update

RNS Number : 8527O

Spirax-Sarco Engineering PLC

06 July 2010

 



Spirax-Sarco Engineering plc

Tuesday 6^th July 2010

TRADING UPDATE

Spirax-Sarco Engineering plc, the world leader in the control and efficient use of steam and in peristaltic pumping, issues the following update in respect of its trading for the six months ended 30th June 2010.  Results for the first half-year are expected to be announced on 24^th August 2010.

Since the AGM, trading conditions continue to be positive and sales for the first half-year were ahead 8% at constant currency, including a 2% contribution from acquisitions; also, the order book increased.  Growth continues to be led by Watson-Marlow Pumps and in the steam business by the Americas and Asia Pacific, with EMEA mixed but overall flat.  Exchange movements have been favourable and added 2% to sales on translation in the first half-year versus average exchange rates in the comparable period last year. 

Adjusted operating profit margin¹ shows a strong improvement over the 15.0% in the first half of 2009 and is expected to be above 19% for the first half of 2010.  We have benefited from operational gearing from the increase in sales, last year's cost reduction measures, small exchange gains and a favourable product mix.  Material costs have also been favourable but are rising and we anticipate this impacting the second half of the year.  We are also increasing our investment in new product development and in market development to enhance our future growth prospects.

We continue to operate with a strong balance sheet and net cash balances at 30^th June 2010 were £18m.  As we have previously indicated, capital investment for this year is expected to be at a high level as we progress several major manufacturing projects, including our new plant in China that was opened last week and the consolidation onto one manufacturing site in Cheltenham.

¹ The adjusted operating profit margin noted above excludes the amortisation of acquisition-related intangible assets and an £8m exceptional revaluation gain following the 25^th May 2010 acquisition of our partners' 51% shareholding in our Mexican business.

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

 

END

 

 

TSTKKPDBABKDBOK