7th May 2015 06:42
LONDON (Alliance News) - Engineering company IMI PLC on Thursday said its market conditions remained challenging in the first quarter of 2015 and said its revenue dropped on the back of foreign exchange movements and contract delays.
IMI said its revenue in the first quarter to the end of March was down 4% year-on-year, reflecting the ongoing damage to its results from the strength of sterling, though this was partially offset by an initial contribution from German power valve company Bopp & Reuther, which it acquired in 2014.
Based on its current performance and market conditions, FTSE 250-listed IMI said it expects organic revenue and margins in the first half to be weaker year-on-year, though it expects an improvement in the second half. Despite that improvement, however, it said organic revenue and margins will be slightly weaker year-on-year for the full year.
Critical Engineering division revenue was down 5% in the quarter, hit by slower-than-expected order intake and some projects being delayed into the second quarter. Precision Engineering revenue was down 3% and the group expects margins in the first half to be lower year-on-year due to the slowing economic conditions in China and a deteriorating market in Brazil. Hydronic Engineering revenue was down 8%, amid mixed underlying conditions in Europe, IMI said.
IMI will post its first-half results on July 31.
By Sam Unsted; [email protected]; @SamUAtAlliance
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