IMI reports in-line third quarter results, disposes units - UPDATE

16th Oct 2013 07:05

- IMI sells Beverage Dispense- Third quarter trading in line- Full-year to meet market forecastsEngineering group IMI is selling its Beverage Dispense and Merchandising divisions to The Marmon Group - which is owned by Warren Buffet's Berkshire Hathaway - for 620m pounds.The company said the disposal will enable IMI to focus on flow control solutions in attractive industrial markets and will be a further significant step "towards IMI's stated objective of increasing the proportion of sweetspot revenues to 75% by 2017". At the same time the group reported third-quarter results in line with expectations with revenue three per cent ahead of last year.In a trading update for the three months to end of September, the company said it will deliver full-year results that meet current market forecasts.The group achieved growth across Severe Service, Fluid Power, Merchandising and Indoor Climate categories in the third quarter. However, revenue in Beverage Dispense fell 8% on the year, due to major customers continuing to defer capital expenditure. "The group retains a strong and flexible balance sheet with good cash generation in the year to date," IMI said.RD