11th Feb 2008 07:00
Smiths Group PLC11 February 2008 Smiths Group trading for the six months ended 2 February 2008 Smiths Group will report its results for the six months ended 2 February, 2008on Wednesday 19 March, 2008. At the start of its close period, the Group isproviding the following trading update. Smiths will report overall sales and profit growth for the first half year inline with management expectations, with strong performance from Detection andSpecialty Engineering offsetting a flat performance in Medical. Currencytranslation had a minor impact. Net debt was approximately £650m at the end ofthe period. Smiths Detection has demonstrated strong underlying sales growth in the firsthalf year as a result of contract wins for aTiX the airport checkpoint X-raysystem that can automatically detect explosives and liquids, JCAD the advancednon-radioactive chemical point detector and significant contracts for highenergy X-ray cargo screening systems. Margins were lower in the period due tostart-up costs associated with new projects and the profile of recent contractwins, which also led to higher inventory levels. Smiths Medical's reported sales and margins were at similar levels to thecomparable period last year. Satisfactory growth in the other parts of Medicalwas offset by weak performance in Critical Care, which faced two specificsupplier issues that have now been largely resolved. Whilst the transfers ofkey production from Hythe (UK) and Kirchseeon (Germany), to plants in lower costregions have been completed, the business has been affected by supply chainissues and the implementation of the ERP system. Management believe that itwill take a significant period of time to fully implement a world class supplychain and ERP system. Delivering this is a key priority as is refreshing theexisting customer offering through the introduction of an increasing number ofnew products. Smiths Specialty Engineering has performed well with increased sales andmargins. John Crane benefited from the continued global investment inpetrochemical infrastructure to address growing demand. Interconnect'sperformance was enhanced by its selection and delivery of protection devices fora 4G WiMAX deployment in the USA. In Flex-Tek a good performance in sales offluid distribution components and services for commercial and military aircrafthelped to offset the impact of the decline in the US residential constructionmarket. Comparisons with H1 2007 will be affected by the sale of MarineSystems. Management will provide a more detailed update at the Interims Resultspresentation on 19 March, 2008. Smiths Group Smiths is a global technology company listed on the London Stock Exchange. Aworld leader in the practical application of advanced technologies, Smiths Groupdelivers products and services for the threat & contraband detection, medicaldevices, energy and communications markets worldwide. Our products and servicesmake the world safer, healthier and more productive. Smiths Group employs morethan 20,000 people in over 50 countries. For more information visitwww.smiths.com Investor Relations [email protected] [email protected]+44 (0)20 8457 8203 +44 (0)20 8457 8403 Cardew [email protected] [email protected]: +44 (0)20 7930 0777 Tel: +44 (0)20 7930 0777Mob: + 44(0)7770 720 389 Mob: +44 (0)7976 249 289 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Smiths Group