13th Nov 2015 07:12
LONDON (Alliance News) - Actuators manufacturer Rotork PLC on Friday said trading conditions remained tough in the third quarter but said its guidance for 2015 remains unchanged.
The FTSE 250-listed company, which makes actuators used to open valves, said quotation activity in the third quarter to the end of September was broadly flat year-on-year, but order intake fell 17%. Revenue in the quarter fell 18% in the quarter and Rotork's order book at October 25 was GBP185.0 million, down 13% year-on-year.
Like others in its space, Rotork has been hurt by the downturn in spending in the oil and gas industry, to which it is heavily exposed. This caused it to issue a profit warning in September.
The company said that while its quotation activity remains encouraging, the timing of orders and product delivery remains difficult to forecast.
Rotork Controls order intake in the third quarter fell 18%, while order intake for its Fluid Systems unit declined 27%. Both divisions are heavily exposed to the oil and gas industry, where companies are deferring spending decisions and cancelling projects in order to cope with the low oil price.
Rotork Gears order intake fell 4.2%, with a decline in orders also from the oil and gas industry and a hit taken from the slowdown in China, while Rotork Instruments order intake rose 7.0%, helped by solid organic growth and contributions from acquisitions.
By Sam Unsted; [email protected]; @SamUAtAlliance
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