19th May 2023 10:41
(Alliance News) - Smiths Group PLC on Friday raised its annual guidance on the back of strong customer demand in its end markets, as it reported "continued strong growth" in its financial third quarter.
The London-based engineering firm said in the nine months ended April 30 organic revenue was up 13.4%. This was in keeping with the 13.5% organic growth seen in the first half.
The company hailed "significant demand" for rotating equipments solutions focused John Crane, as well as a "particularly strong quarter" for Smiths Detection and strong growth in the aerospace segment for Flex-Tek, which it said will more than offset the expected slowing in the US construction business. However, its Interconnect unit fell annually due to "softness" in some of its end markets.
Consequently, Smiths raised guidance for its financial year ending July 31 to around 10% organic revenue growth from "at least" 8% provided previously - which had already been upgraded twice. In financial 2022, organic revenue growth was 3.8%. It kept the guidance of "moderate" improvement in margin.
"The third quarter performance was driven by both good volume and price growth, with strong demand in most of the group's end markets. We continue to invest in working capital to ensure we meet this strong customer demand," Smiths said.
The company will release its annual results on September 26.
Smiths shares were 0.7% higher at 1,717.00 pence each in London on Friday morning.
By Tom Budszus, Alliance News reporter
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