30th Jun 2006 07:01
IMI PLC30 June 2006 30 June 2006 IMI plc Trading Update In accordance with its normal practice, IMI plc is today issuing a tradingupdate in advance of its interim results announcement for the six months ending30 June 2006, due to be published on 4 September 2006. Trading to date in our Fluid Controls businesses continues to demonstrate goodunderlying momentum. Our Retail Dispense businesses, as already indicated, willbe behind last year for the first half but we expect a stronger second half. In Severe Service order intake for new valves remains buoyant both in the powersegment and oil and gas. Customer Service orders also remain healthy. Overallshipments in the first half are expected to be around 10% ahead of last year.Truflo, acquired with effect from 26 April, has traded well in the first fewweeks of ownership, with continuing good demand. Within Fluid Power the improvement in European demand seen at the start of theyear has continued although the UK market is somewhat subdued. The US and Asiaremain positive and our sector growth continues to be encouraging. In globaltruck, demand is expected to remain strong for the whole of 2006 and we arepleased with the contribution being made by GT Development, acquired at the endof last year. Indoor Climate is on course to produce a good first half performance and isexpected to show organic growth of around 3% with both TRV and balancing valvesshowing positive momentum. High metal prices however, remain challenging. In Beverage Dispense, fewer major account conversions by brand owners and somedelays in shipment call-offs have resulted in the normal seasonal momentum inthe second quarter in the US being lower than in previous years. In Europe theoutlook has improved and in the UK and Asia the underlying momentum remainspositive. As stated at our Annual General Meeting, sales will be lower in thefirst half but are expected to pick up in the second half. Northern Parts, therecent acquisition in our parts management business, has made a good start. In Merchandising Systems, dealer activity in the US automotive sector remainsslow but the normal second half seasonal impetus is expected. Our beverage,grocery, and consumer electronics sectors continue to deliver good growth and wesee a number of key programme opportunities in the second half for our front-endmerchandiser business. In the US, we have increased our investment in bothcategory management and the development of a cosmetic sector. We are pressing ahead with our restructuring programme announced in March andhave already started to implement a significant relocation of some of our USFluid Power operation. Restructuring costs in the first half are expected to bearound £7m compared to £2.2m in 2005. We expect the first half profit before restructuring costs and intangibleamortisation to be £84-87m. In arriving at this guidance we are not anticipatingany significant impact from the change in fair value of financial instruments(IAS39). The equivalent number in 2005 for continuing businesses was £69.6m(after a charge of £2.9m under IAS39). - Ends - IMI plcGraham Truscott, Communications Director Tel: 0121 717 3712 Weber Shandwick Square MileNick Oborne/Stephanie Badjonat Tel: 020 7067 0700 Notes to editors IMI 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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