Actuator manufacturer says forex has helped push FY profits up 10%

Companies: Rotork


 

British manufacturer Rotork Plc, says its full-year results will be at the top end of expectations, roughly £590m, and that favourable currency translation has given the business a 10% boost since Brexit.

 

"Currency continues to provide a tailwind, and based on current exchange rates is now expected to deliver a 10% benefit to both full year revenue and profit.  

The actuator manufacturer and flow control company, reported underlying performance for the third quarter broadly in-line with the first half of the year, albeit with currency translational benefits.

 

Rotork says it expects full-year revenues to be at the top end of its consensus range, £527.3m to £587m, with Q3 revenues roughly 5.3% higher than last year on a constant currency basis, and 22.2% in total:

 

Taking into account this assumed currency benefit, our performance to date, and anticipated shipments in the remaining two months of 2016, the Board now expects reported revenue to be towards the top end of market expectations."

Order intake for Q3 was 22.2% up on the last year, but up just 0.1% on a constant currency basis, which means the underlying business is relatively in-line with last year.

 

"Order intake for the third quarter was up 22.2% (+0.1% OCC) on the comparable period in 2015, with cumulative order intake in the ten months to 30 October up 10.2% (-6.7% OCC) on the prior year.

Management confirmed that trading looked like it would remain challenging across its key markets and regions, with margins expected to be lower than the prior year, but in line with expectations.


The company's share price opened up 3.5% on Tuesday before jumping to 12% above Monday's close by 10:30 a.m.

 


The information contained within this post is based on personal experience and opinion and should not be considered as a recommendation to trade nor financial advice.