17th Nov 2021 09:12
(Alliance News) - Spirax-Sarco Engineering PLC on Wednesday said it still expects to report record results for 2021 despite supply chain issues.
The manufacturer of thermal energy management and pumping systems noted that industrial production sector recovered from Covid-19 pandemic in the third quarter of 2021; however, disruptions in the global supply chain led to material shortages and rising costs.
The Cheltenham, England-based company said it continued to experience very strong demand, with order books in all three of its businesses expanding in the four months to the end of October above expectations.
Spirax-Sarco is composed of Steam Specialties, for the control and management of steam; Electric Thermal Solutions, for electrical process heating and temperature management; and Watson-Marlow, for peristaltic pumping and associated fluid path technologies.
Less positively, Spirax-Sarco noted that all of its three businesses were hurt by shipment delays, but the effects have been greater within Watson-Marlow and Electric Thermal Solutions.
Currency effects also hurt sales and operating profit year-on-year, the company said, as sterling strengthened against its basket of trade currencies.
Despite that, Spirax-Sarco maintained its overall guidance and said it expects record levels of revenue, profit and operating margin for 2021. Looking further out, for 2022, the company expects growth in both sales and profit, underpinned by continuing strong demand and its "higher-than-normal" order book.
Spirax-Sarco said it will report its 2021 results on March 10 next year.
The stock was trading 5.9% lower in London on Wednesday at 16,000.00 pence each, making it the biggest FTSE 100 faller.
By Evelina Grecenko; [email protected]
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