Rotork PLC (ROR) - Interim Management Statement
RNS Number : 2764R
16 November 2012
16 November 2012
Interim Management Statement and Acquisition
Rotork p.l.c ("Rotork"), the market leading actuator manufacturer and flow
control company, today issues its Interim Management Statement covering the
period from 1 July to 15 November 2012 and announces the acquisition of Soldo
srl, a switch box manufacturer, within its Instruments division.
Order intake in the period remained strong, with the third quarter at record
levels and 24.9% higher than the prior year. Cumulative order intake to 28
October was 20.4% ahead of last year.
Revenue in the third quarter was good, 9.9% higher than the prior year,
against a strong comparative period in 2011. Notwithstanding the headwind
caused by the strengthening of sterling in the second half, cumulative revenue
to 28 October was 17.0% ahead of the prior year. As last year, we anticipate a
strong fourth quarter in terms of revenue as projects are delivered out of the
The order book at 28 October was £190.8m, 16.5% higher than the same point
last year. Due to our continued success on major international projects, we
have a greater proportion than normal of our current order book due to be
delivered over a longer time frame, with deliveries in 2013 and, in a number
of cases, in 2014.
The Group continues to generate industry leading margins and we anticipate
these will be higher in the second half than the first half, with full year
margins slightly lower than the prior year. Operational gearing has been
beneficial, however changes in divisional mix, with the record performance of
Fluid Systems, and costs related to the introduction of a number of new
products have reduced Group margins.
Despite the continued weakness of power markets in India and China, cumulative
order intake to 28 October was 8.3% ahead of the prior year. Third quarter
order intake was 9.3% ahead of the same period last year. A number of markets
are performing well with Russia, North America and Australia particularly
strong. We continue to benefit from our broad product portfolio and diverse
end market and geographic exposure. This year we have introduced a number of
new products, including the latest version of our IQ series of electric
actuators. On a divisional basis, Controls has incurred the highest level of
costs related to new product introductions, the benefits of which we will see
through 2013 and beyond.
Rotork Fluid Systems
This was the fastest growing division and order intake in the third quarter
was 47.2% higher than the same period last year. Cumulative order intake to
28 October was up 32.7% on the prior year. The demand for our products remains
strong with North and South America, Middle East and China seeing the greatest
growth. The strength of the LNG market in Australia has also benefited Fluid
Order intake has continued to be positive, with the third quarter 21.0% higher
than the same period last year. Cumulative order intake to 28 October was
22.4% ahead of the prior year. We continue to win new customers and this is
delivering good growth and, as in the other divisions, we have added new
products to our product portfolio. Russia and China remain key markets for us
as we continue to grow our customer base.
The integration of Rotork Fairchild, acquired in November 2011, is progressing
well and the business has performed in line with expectations. As part of our
stated strategy of developing the Instruments division, we are today
announcing the acquisition of Soldo srl, a switch box manufacturer based in
Italy with sales operations in USA and Singapore, for up to £21.5m. This
acquisition adds a second high-quality business to our Instruments division
and will strengthen Rotork's presence in the wider flow control market.
The Group continues to be highly cash generative and maintains a strong
balance sheet with a high return on capital employed. Net cash balances at 28
October were £58.3m. The acquisition announced today has been funded out of
Based on the strong performance year to date, our record order book and
diverse end market exposure, the Board continues to expect further progress in
the full year, with margins slightly lower than those seen in 2011.
Peter France, Chief Executive, and Jonathan Davis, Finance Director, will be
hosting a conference call for analysts and investors at 9.30am 16 November. To
join the call, please dial in to the following number:
UK number +44 (0)203 140 0668
UK toll free number 0800 368 1950
Participant PIN 801643#
A recording will be available shortly after the conclusion of the call on the
UK number +44 (0)20 3140 0698
UK toll free number 0800 368 1890
US toll free number +1 877 846 3918
Conference reference 388057#
1. Third quarter refers to the period from 1 July to 30 September 2012.
2. 2012 figures are quoted at actual exchange rates and include the
contribution from acquisitions made in 2011. 2011 figures are as previously
3. Cumulative results refer to the period 1 January to 28 October 2012.
For further information, please contact:
Rotork p.l.c. Tel: 01225
Peter France, Chief Executive
Jonathan Davis, Finance Director
FTI Consulting Tel: 020 7269
This information is provided by RNS
The company news service from the London Stock Exchange
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