21st Nov 2019 08:55
(Alliance News) - Rotork PLC said Thursday it expects to deliver "modestly lower" year-on-year sales in 2019 as a "slightly greater than usual" proportion of recent orders will not be delivered until next year.
In a trading update for the four months to October 27, the company said the expected lower sales reflect "order phasing, portfolio and product rationalization and the impact on the prior year from delivery of several significant projects and sales to countries subsequently placed under sanction."
The company said order intake showed improvement compared to the third quarter in 2018, but large project activity remained subdued.
The company said it expects adjusted operating profit for 2019 to be in line with management expectations on an organic constant currency basis. In 2018, reported adjusted operating profit of GBP146.0 million.
"Our Growth Acceleration Programme is on track. Our end market reorganisation continues with the rollout to Asia Pacific completed and Europe, Middle East & Africa now well underway," the company said.
Rotork continued: "Our Value Selling initiative is ongoing, with over half of our sales people having already completed the training. We have made further progress driving lean improvements and reducing inventory levels. We have completed the IT system design stage and we plan to launch the global HR platform ahead of plan before the end of the year. "
Rotork shares were down 5.0% in London at 318.80 pence each early on Thursday.
By Loreta Juodagalvyte; [email protected]
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