IMI pulls guidance as April sees 'marked' hit from Covid-19

7th May 2020 09:39

(Sharecast News) - Engineering group IMI pulled full year guidance and said the coronavirus pandemic had made a "more marked impact" on April trading as lockdowns took their toll.
The company said April organic sales were 9% lower year on year reflecting the steep decline in its commercial vehicle segment and temporary construction site restrictions affecting IMI's Hydronic unit.

"We continue to accelerate our cost reduction programs and now expect full year restructuring benefits of ?28m and a further ?30m of other cost containment initiatives," the company said on Thursday.

IMI said organic revenues for the three months to the end of March were 5% lower, excluding the impact of acquisitions and exchange rate movements, in line with guidance. Profits, margins, and operating cash flow were all higher than the same period in the prior year.

"Until sufficient time has passed to offer greater insight, we refrain from offering guidance. However, we will continue to offer updates as it becomes appropriate to do so, particularly should we begin to see more clarity regarding the impact of Coronavirus on the remainder of the year," the company said.