17th Nov 2015 08:27
LONDON (Alliance News) - Mid-cap engineer Spirax-Sarco Engineering PLC on Tuesday said industrial production growth has continued to slow through 2015, putting pressure on its sales, but maintained its expectations for the full year.
The company, which makes steam management systems and peristaltic pumps, said industrial production growth has continued to slow through the second half of 2015, particularly in Latin America and Asia. Spirax-Sarco has, however, been seeking to cut costs and boost efficiency across the business, meaning its expectations for 2015 remain unchanged.
It expects its sales for the full calendar year will be down around 4.0% and operating profit down 5.0% if current exchange rates continue through the balance of 2015, but said its diversification across market sectors is helping its resilience against the tough market conditions, which have left its order visibility very short.
Spirax-Sarco said organic, constant currency sales slowed modestly in the first ten months of 2015, as expected, from the growth seen in the first half of the year. It said it is seeing signs of stabilisation in its Europe, Middle East and Africa business, but industrial production remains weak in North America and Latin America, while Asia Pacific has been hit by the slowdown in China.
Shares in Spirax-Sarco were up 2.5% to 2,981.00 pence on Tuesday morning, one of the best performers in a rising FTSE 250 index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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