29th Apr 2016 07:04
LONDON (Alliance News) - Rotork PLC on Friday said favourable exchange rates and acquisition contributions drove up revenue and order intake in its first quarter, and announced the purchase of valve gearbox manufacturer Mastergear for USD25.0 million.
The actuators manufacturer said its order intake rose 2.5% over the period from the start of 2016 to April 3, on a quarter-on-quarter basis, whilst revenue rose 0.7%. Rotork said it benefitted from favorable exchange rates, which contributed 3.1% to order intake and 3.0% to revenue, and its acquisitions contributed 8.4% to order intake and 9.2% to revenue.
On an organic basis, order intake was down 9.0% and revenue down 12%.
Rotork said its order book at April 3 was GBP189.3 million, 14% higher than at December 31.
Rotork noted the oil and gas market remained challenging, but it saw good activity in the water and industrial markets. It said it remains well placed internationally to benefit from opportunities in its key markets.
The company added that it has also made progress against its cost reduction plans, and said it expects revenue to be weighted to the second half of the year, in line with its traditional pattern. Management expectations for the full year are unchanged, it added.
Elsewhere, Rotork said it has purchased the US and Italy-focused manufacturer Mastergear from Regal Beloit Corp of Wisconsin in the US for USD25.0 million on a cash-free, debt-free basis. Rotork said Mastergear also has some operations in China.
Mastergear will become part of Rotork's Gears division, Rotork said, noting that 55 people will join Rotork as part of the acquisition.
Mastergear generated revenue of USD22.0 million in the twelve months to December 31, Rotork added.
By Hannah Boland; [email protected]; @Hannaheboland
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