TIDMIMI
RNS Number : 1199E
IMI PLC
04 May 2017
4 May 2017
IMI plc ("IMI" or "the Group")
Interim Management Statement
IMI, the specialist engineering company, issues the following
Interim Management Statement, which covers the first quarter from 1
January to 31 March 2017.
Current trading and outlook
Results in the first quarter of 2017 reflect a continuation of
the improved trading experienced in some parts of the Group in the
final quarter of last year, albeit with continuing uncertainty in
other segments. Overall, current trading is consistent with market
consensus expectations for the year.
After adjusting for the impact of exchange rate movements,
revenues for the three months to the end of March were 4% higher
compared to the same period last year. On a reported basis,
revenues were 18% higher reflecting the favourable impact of
exchange rate movements.
We now expect organic revenues in the first half of 2017 to
reflect a smaller reduction than previously indicated when compared
to the first half of 2016, with margins slightly lower than the
first half of last year. Results for the full year are still
expected to include a second half bias reflecting the timing of
restructuring benefits and normal trading seasonality.
Our strategic plan to drive sustainable long-term growth
continues to make a real difference across all parts of the Group.
Our new product pipeline continues to develop well, the operational
performance of our manufacturing facilities has further improved
and the new systems and processes we are putting in place are
enabling us to do business more efficiently. The reorganisation
activities across all three divisions are progressing well and
according to plan.
IMI Critical Engineering
The outlook for our major markets continues to be challenging.
However, the combination of project timing and benefits of the
division's Value Engineering resulted in solid order input in the
first quarter of the year.
Critical Engineering organic revenues in the three months to the
end of March were 6% higher and on a reported basis were 21% higher
than the same period last year. Sector prospects remain mixed with
New Construction revenues increasing 10% and Aftermarket up 3%,
when compared to the comparatively weak first quarter of 2016.
Based on the current order book and market outlook, first half
organic revenues are likely to be better than previously indicated,
but still lower than the first half of 2016 with margins broadly
similar to the first half of last year. Results for the full year
are expected to include a second half bias reflecting the timing of
restructuring benefits and normal trading seasonality.
IMI Precision Engineering
Precision Engineering organic revenues in the three months to
the end of March were 3% higher and 16% higher on a reported basis,
when compared to the same period last year.
Following improved Industrial Automation revenues in the final
quarter of 2016, the sector has continued that momentum into the
first quarter of 2017. Commercial Vehicle production in the year to
date has declined less sharply than previously expected in both
North America and Europe and helped mitigate the impact of contract
completions, which have resulted in lower sales in the quarter.
Based on the current market environment, we now expect first
half organic revenues to be broadly equivalent to the first half of
2016. Excluding the GBP4m benefit from 2016 property disposals,
margins are expected to be slightly improved when compared to the
first half of last year. While markets remain uncertain, the
benefits of restructuring and new product launches are expected to
deliver further progress in the second half of the year.
IMI Hydronic Engineering
Hydronic Engineering organic revenues in the three months to the
end of March were 4% higher and 17% higher on a reported basis,
than the comparable period in 2016.
Across Europe underlying market conditions continue to be mixed
with new products, our new over-the-counter sales strategy,
environmentally driven incentive programmes in Germany and a
stronger performance from Asia, all contributing to improved first
quarter revenues.
The first quarter results continue to support our expectations
for revenue growth in the year. While operating margins in the
first half are still expected to be impacted by increased marketing
and development costs they are expected to show their normal second
half improvement, including the benefits of restructuring.
Exchange rates
The 2017 financial results and, in particular the first half,
will continue to be favourably impacted by the relative weakness of
Sterling against the Euro and the US Dollar. At 2017 first quarter
average rates, this would give rise to an exchange rate benefit of
around 7% to both revenues and profits in the full year.
Interim results
IMI will issue its interim results announcement in respect of
the six months ending 30 June 2017 on 28 July 2017.
A conference call for analysts and investors will be held at
08:00 BST today to discuss this statement. To access the call,
please dial +44 (0)1452 555 566, Toll Free (UK) 0800 694 0257 -
Conference Call id: 3777670.
Enquiries to:
John Dean IMI Tel: +44 (0)121 717 3712
Suzanne Bartch / Gayden Metcalfe Teneo Blue Rubicon Tel: +44
(0)203 757 9239
Notes to editors:
Cautionary Statement
This Interim Management Statement contains forward-looking
statements which are made in good faith based on the information
available at the time of its approval. It is believed that the
expectations reflected in these statements are reasonable but they
may be affected by a number of risks and uncertainties that are
inherent in any forward-looking statement which could cause actual
results to differ materially from those currently anticipated.
IMI plc
IMI plc, the specialist engineering company, designs,
manufactures and services highly engineered products that control
the precise movement of fluids. Its innovative technologies, built
around valves and actuators, enable vital processes to operate
safely, cleanly, efficiently and cost effectively. The Group works
with industrial customers across a range of high growth sectors,
including energy, transportation and infrastructure, all of which
are benefiting from the impact of long-term global trends including
climate change, urbanisation, resource scarcity and an ageing
population. IMI employs over 11,000 people, has manufacturing
facilities in more than 20 countries and operates a global service
network. The Company is listed on the London Stock Exchange.
Further information is available at www.imiplc.com.
IMI plc is registered in England No. 714275. Its legal entity
identifier ('LEI') number is 2138002W9Q21PF751R30.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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