14th Nov 2014 07:16
LONDON (Alliance News) - Specialist engineering company IMI PLC on Friday said revenue fell in four months to the end of October owing to the strength of sterling, and said it has proposed a deal to buy B&R Holding GmbH for EUR152.6 million.
The FTSE 100-listed company said it expects its full year results to be broadly in line with market expectations, despite more difficult-than-expected trading conditions in Germany.
It said it expects to produce a more modest growth rate in the second half of the year, and said investments for growth are expected to result in margins being slightly lower year-on-year, as anticipated.
IMI said revenue for the four months to the end of October was down 6% and are down 5% in the year to date as sterling drags back its reported results. Underlying revenue was up 1% in the four months and up 2% in the year to date excluding the currency movements.
Critical Engineering order intake increased 10% in the four months to end-October, with a particularly strong performance from the oil and gas sector, the company said.
Precision Engineering revenue increased 3% on an underlying basis, with Industrial Automation business in North America and Asia holding up well, it said.
Hydronic Engineering revenue was down 2% on an underlying basis, hit by subdued European construction activity.
Elsewhere, IMI said it has proposed a EUR152.6 million acquisition of B&R Holding GmbH, a German engineering company. The business will be integrated into IMI's Critical Engineering arm.
By Sam Unsted; [email protected]; @SamUAtAlliance
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