22nd Nov 2016 08:28
LONDON (Alliance News) - Spirax-Sarco Engineering PLC on Tuesday said it remains on track to meet its expectations for 2016 despite difficult conditions continuing in its key markets.
The mid-cap engineer, which makes steam management systems and peristaltic pumps, said organic sales growth, at constant currencies and stripping out acquisition contributions, has slowed in the four months to the end of October compared to the first half. This was in line with expectations due to the non-repeat of large projects in its Steam Specialties business.
In the four-month period, organic sales growth in its Europe, Middle East & Africa division slowed against the first half, but should bounce back as orders continue to flow through in the final months of the year.
Asia-Pacific organic sales growth was weaker in the four months, due to the absence of large project sales in China and Korea, while Americas growth has been broadly flat compared to the first half.
Spirax-Sarco said industrial production growth rates have been close to zero throughout the year. But it said that while it has limited visibility, short order books and lacklustre markets to contend with, its diversification should help to mitigate these issues and its expectations for 2016 are unchanged.
Spirax-Sarco shares were up 0.7% to 4,251.00 pence Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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