Aggreko reiterates profit guidance despite Q3 slowdown

14th Nov 2014 07:29

Temporary power and temperature control group Aggreko kept its full-year profit guidance unchanged, but said that adverse currency movements had a greater impact on its top line in the third quarter while organic growth slowed.The company said it continued to expect 2014 underlying trading profits to be "similar to 2013", when it earned £357m.However, reported revenues in the three months to 30 September fell by 3% on last year. This compared with the 1% growth registered in the first half.On an underlying basis, revenues were 6% ahead of last year, though growth slowed significantly from the 12% annual increase in the first six months.Revenues in the Americas business increased by 15% on an underlying basis, while the Europe, Middle East and Africa region grew 4%. However, underlying sales in Asia, Pacific and Australia dropped 9% due to the slowdown in the Australian mining sector, as well as volume and pricing pressure in Indonesia.Underlying sales from the local division, which rents out products such as generators and heaters, increased by 4% in the third quarter as growth slowed down from 10% in the first half due to stronger comparatives, as expected.Meanwhile, the power projects business, which supplies power plants for governments and major industrial customers, grew by 10% after 14% growth in the first half."As anticipated tougher comparatives mean that growth in the local business will be at a lower level in the second half, but we continue to expect to deliver growth for the year as a whole," Aggreko said."In power projects, year to date order intake is stronger than last year and we are encouraged with the recent progress on contract extensions; however, the market environment continues to be uncertain."