24th Apr 2015 06:51
LONDON (Alliance News) - Rotork PLC on Friday said its order intake dropped in the first quarter on the back of the challenging conditions in oil and gas markets and continued uncertainty in some of its markets, with revenue falling on the back of the slow start to the year and the timing of projects.
The FTSE 250-listed company, which makes actuators and flow control products, said order intake in the first quarter to the end of March fell 7.3% year-on-year, driven by lower investment in upstream oil and gas markets and by continued political uncertainty in Russia, Eastern Europe and the Middle East. Its Asia Pacific unit also had a slower start to the year than it had anticipated.
Revenue fell by 6.7% in the quarter, reflecting the slow start to the year and the timing of project deliveries, Rotork said.
Rotork Controls order intake fell 5.8%, though the group said project visibility remains good and demand in the Americas, India and the Middle East has held up. It expects an improvement in Asia in the second quarter, with Europe to remain subdued.
Rotork Fluid Systems order intake plunged 30% year-on-year, however, due to project delays and general uncertainty in the oil and gas market. Rotork expects markets to remain challenging, though it said project activity is improving and it expects a better performance in the second quarter.
Rotork Gears order intake was 2% higher year-on-year and the company expects good growth in Asia and the Americas, while the Rotork Instruments business saw order intake more than double on the back of acquisitions it made in the past year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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