8th Aug 2007 07:00
Smiths Group PLC08 August 2007 Smiths Group: Year-end trading update Smiths, the global technology company, will report its preliminary results forthe year ended 31 July on Wednesday, 26 September. Ahead of that announcement,the company is providing the following update on trading in financial 2007. Headline profit before tax for the continuing activities is expected to be some7% ahead of the prior year level of £316m, benefiting from lower interestexpense and improved pensions financing. Year-end net debt is expected to bebelow £600m. With more than half of Smiths continuing activities based in North America, thedecline in the average dollar/sterling exchange rate by 16 cents between 2006and 2007 will impact reported sales and headline operating profit by some 6%.As a result, headline operating profit is expected to be at around the samelevel as the prior year's £345m. On an underlying basis, Detection and Specialty Engineering have generated goodsales and profit growth, in line with management expectations. Sales in Medicalhave been held back by the operational factors disclosed at the interim stage,although margins have improved. With relocation to lower cost manufacturingcentres now on plan and capacity constraints resolved, Medical's output rateswere closer to normal levels by the year-end. The EGM seeking shareholder approval for the formation of Smiths GE Detection islikely to be held in the fourth quarter of calendar 2007. Smiths expects to achieve underlying growth from all of its divisions in the newfinancial year, although reported growth will be held back by the recent furtherweakness of the US dollar. The company will hold a conference call for analysts and investors at 10.00amthis morning. The dial-in number is +44 (0)20 7019 0812, and the access code isSmiths. From 12.30pm, a recording of the call can be heard on +44 (0)20 79708402, and the access code is 2060. Extracts of the 2006 income statement forthe continuing activities, which were published in the interim accounts, can beseen at http://www.smiths.com/ir.htm. Smiths is a global technology company, listed on the London Stock Exchange.Smiths Group is a world leader in the practical application of advancedtechnologies. Its products and services make the world safer, healthier andmore productive. Smiths Group has three divisions focused on the high growthdetection, medical devices, energy and communications markets. It employs morethan 20,000 people in over 50 countries. For more information visitwww.smiths.com. -o- Investor Relations MediaRussell Plumley Chris Fox+44 (0)20 8457 8203 +44 (0)20 8457 [email protected] [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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