24th Oct 2014 06:29
LONDON (Alliance News) - Spectris PLC said Friday that it now expects its full year earnings before interest, tax, and amortisation to be "modestly" below current company-compiled consensus of GBP200 million, as weaker than expected trading patterns from its second quarter continued into the third.
The instrumentation and controls company said sales in its third quarter to end-September fell 5%, as growth contributed by acquisitions of 2% was offset by the strength of sterling, which had a negative effect of 7%. At constant currency and on an organic or like-for-like basis, sales were flat.
In North America like-for-like sales grew 7%, but dropped 3% in Asia Pacific and 6% in Europe due to increasing weakness in Eurozone economies, especially Germany.
Growth in its test and measurement, in-line instrumentation and industrial controls segments were offset by a decline in its materials analysis segment. Sales into the automotive, energy and utilities markets showed good growth, but sales to the pulp and paper industry were lower, particularly in Asia, Spectris said.
In materials analysis, metals, minerals, mining and academic research sectors remained weak, although Spectris noted "signs of improving demand from customers in these markets."
Spectris also said that its operating cash-flow conversion remains strong, and it is maintaining a "healthy financial position". Its net debt at September 30 was around GBP119.8 million, up GBP15.7 million compared to the start of the year, after it made acquisitions in the half year.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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