(Sharecast News) - Manufacturer Rotork said on Friday that first-quarter trading had been in line with internal expectations, with order intake growing "high-single digits" year-on-year on an organic constant currency basis despite a fresh wave of Covid cases in China leading to the shuttering of its key Shanghai factory.
However, Rotork also cautioned that revenue was down "mid-single digits" year-on-year on an organic constant currency basis, reflecting continued component availability challenges, the cessation of deliveries to Russia, and reduced deliveries from its important Shanghai, facility which particularly impacted its water and power division.
Rotork stated it was managing supply issues from its Shanghai facility, which was in a Covid-19 lockdown area and currently closed after it operated at "a significantly reduced output" from 15 March to 13 April before closing.
"We currently anticipate a partial re-opening in the coming days however there can be no certainty that this will happen or it will remain open," said Rotork.
The FTSE 250-listed firm added that it had continued to see elevated material costs and disruption to supply routes and warned that it was also currently experiencing "significant labour cost increases".
"The outlook for our end markets remains positive and the recovery in oil and gas markets is continuing. Our order book is at a record high and we are working hard to deliver on it in the face of increased geopolitical and macroeconomic uncertainty and continued supply chain disruption which is expected to result in an even greater weighting to the second half," said Rotork.
"We remain committed to delivering mid-to-high single-digit revenue growth and mid-20s adjusted operating profit margins over time."
As of 0805 BST, Rotork shares were down 3.84% at 290.60p.