9th May 2008 07:00
IMI PLC09 May 2008 9 May 2008 IMI plc AGM and Interim Management Statement IMI plc, the major international engineering group, issues this interimmanagement statement for the period since 1 January 2008, ahead of its AnnualGeneral Meeting to be held at 12 noon today, 9 May 2008. Current trading Group revenues for the four month period to the end of April 2008 show organicgrowth (at constant currency and excluding acquisitions) of around 7%. All fivebusinesses contributed positively to this growth over the period. Markets for our Severe Service business remain buoyant. We have made very goodprogress in restoring our ability to take orders and we now anticipate strongershipments in the second half, lifting organic growth for the year to around 5%.This compares to our earlier guidance of a flat performance. Our Fluid Power business is performing in line with expectations. Growth in oursector business is maintaining its momentum, although US truck volumes areshowing recent signs of weakening with some second half schedules being pushedoff into 2009. Our general pneumatics business is performing very well with allgeographic markets demonstrating good year on year growth. The organic revenue growth in Indoor Climate has seen some recovery from thesecond half of 2007 assisted by the stabilization of the thermostatic radiatorvalve business in Germany and from strong growth in Eastern Europe. Beverage Dispense revenues are showing good growth in the US, with a healthycontribution from new products and a strong performance from 3Wire, our on-linebeverage and food service parts business. New products have also contributedsignificantly to growth in Continental Europe. The UK pub market however hasbecome increasingly difficult. Merchandising has delivered strong growth particularly within the cosmetics andfood and beverage sectors. We have recently won a significant order from a USsupermarket chain, which will help continue our momentum. Sharp increases insteel prices coupled with the traditional pricing lag, primarily in our legacycarts business, are likely to have some impact on first half margins. Severe Service Investigation The independent investigation is now largely complete. We continue to cooperatewith the US Department of Justice to understand their requirements and thetiming of any action that they may take. Share buyback and exchange rates We have continued the on-market share buyback since the announcement of ourpreliminary results for 2007 on 5 March 2008. 1,774,700 shares have beenrepurchased at a cost of £8.0 million. The weakening of sterling in the first four months of 2008 has had a positiveimpact on the translation of the Group's revenues and profits. If the full year2007 results were translated at average exchange rates ruling in the first fourmonths of 2008, this would result in revenues and adjusted operating profits(1)being respectively 7% and 8% higher. Financial position In early 2008 the Group refinanced out to 2018 $100m of the US loan notes due tomature in 2009 and added a further $50m to this tranche. The Group has alsoobtained additional committed banking facilities of £25m since the beginning ofthe year. The financial position of the Group at the end of April 2008 is notmaterially changed from that reported at 31 December 2007. Outlook The Group's end markets generally remain firm with no discernible change inorder momentum in recent months. Prospects for the oil and gas and power marketslook positive for our Severe Service business. Providing end markets remain supportive and notwithstanding some inflationarypressures on input costs, the combination of growth from new products, strongemerging markets growth and the benefits from our restructuring programme givesus confidence for good progress in 2008. IMI will announce its interim results on 28 August 2008. (1) Operating profit before restructuring, investigation costs, intangibleamortisation and other income - Ends - IMI plcGraham Truscott, Communications Director Tel: 0121 717 3712 Weber Shandwick FinancialNick Oborne/Stephanie Badjonat Tel: 020 7067 0700 Notes to editorsIMI is a dynamic, worldwide company delivering innovative engineering solutionsto leading global customers in clearly defined niche markets. Its fivebusinesses share a common goal - to convert their industry knowledge and marketinsight into customised, design-engineered solutions which create customeradvantage and value. These include severe service valves, motion and fluidcontrol systems, indoor climate controls, beverage dispense systems, andmerchandising display systems for retail operations. Close customer relationships, strong positions in growing markets and cleardifferentiation through technological innovation or service are the definingcharacteristics of all IMI businesses. IMI is quoted on the London Stock Exchange. Information about IMI plc can befound on the website: www.imiplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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