30th Apr 2021 09:09
(Alliance News) - Rotork PLC on Friday said all its production sites are running close to normal levels, though it warned of rising logistics and commodity costs as well as supply-route disruption.
The Bath-based electric, pneumatic and hydraulic valves manufacturer said that several of sites were hurt by Covid-19 closures earlier in its first quarter ended April 4.
"Whilst every effort is being made to keep our facilities open, we will not hesitate to close them if required or if we believe there is any risk to our colleagues or their families or friends," Rotork said.
Its first quarter showing was in line with expectations. Revenue was up by mid-single digits annually, on an organic constant currency basis.
Order intake was "mid-single digits below the 2020 comparator". The first quarter of the previous financial year was only "modestly affected" by the virus outbreak.
Rotork added: "Like many global businesses we are seeing elevated logistics costs and disruption to some supply routes as well as commodity cost escalation. In order to mitigate the higher logistics costs we introduced temporary surcharges on the most affected routes earlier this year. Commodity cost inflation is anticipated to be largely offset by our January price increase.
"We continue to strengthen our business and are well-placed to benefit from recovering demand. Whilst the outlook for our end markets is improved, Covid-19 related uncertainty remains. We remain committed to delivering sustainable mid to high single digit revenue growth and mid 20s adjusted operating profit margins over time."
Rotork will publish its first half results on August 3.
Shares in the company were 2.4% lower at 347.80 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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