Smiths Group sees FY revenue, operating profit ahead of views

9th Aug 2016 08:35

(ShareCast News) - Shares in Smiths Group rallied on Tuesday after the company sounded an optimistic note on its prospects for the full year.In a trading update for the year to the end of July, Smiths said full year revenue is expected to be above both expectations and the previous year thanks to a stronger operational performance, principally in Smiths Detection. In addition it pointed to the favourable impact of a stronger US dollar which more than offset a 10% underlying reduction in revenues at John Crane.Smiths also said on Tuesday that headline operating profit for the year is likely to beat expectations, albeit falling short of 2015 levels, with the reduction in profits at John Crane more than offsetting favourable currency movements and improved underlying profitability in Smiths Medical, Smiths Interconnect and Smiths Detection."Expectations for performance in 2017 remain unchanged, excluding the potential foreign exchange translation benefit from the weaker British pound should current rates continue," the company said.Smiths is due to release full-year 2016 results on 28 September.At 0845 BST, Smiths shares were up 3.6% to 1,336p.