7th Nov 2014 07:50
LONDON (Alliance News) - Spirax-Sarco Engineering PLC on Friday added itself to the ever-growing list of companies hit hard by the strength of sterling, saying its operating profit and revenue for the year are expected to take a hit from currency translation, even as organic sales growth in the four months to the end of October increased.
The FTSE 250 engineering company said operating profit for the four months to October 31 was in line year-on-year on a constant currency basis, and said its operating profit margin for the year to the end of October was ahead on both a constant currency and reported basis, despite the headwinds coming from the strength of sterling.
The group said that if current exchange rates continue for the rest of the year, it expects 2014 sales will be down 6.3% on translation compared to the full year 2013 average exchange rates. But the impact on its operating profit is set to be even more severe, at an estimated 10% for the year.
In the four months to the end of October, the group saw organic sales growth at 4%, with growth largely consistent with the first half of the year in its four operating segments.
The group said its order book for the year remains robust, backing its expectations for further sales growth in the rest of the year. The group said it is confident of making further progress in the final months of 2014.
By Sam Unsted; [email protected]; @SamUAtAlliance
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