Smiths Group trading in line for the first quarter

19th Nov 2013 07:14

- Overall trading since July in line with expectations- Improvements in Detection, John Crane and Flex-Tek- Weakness in Medical and InterconnectFTSE 100-listed global technology business Smiths Group said overall trading in the three months to the start of November has been in line with expectations as improvements in Detection, John Crane and Flex-Tek more than offset some weakness in Medical and Interconnect.The group, which surprised the market with a profit warning in July due to contractual issues in its Detection unit, said revenue and headline operating profit, in the three-month period to November 2nd, have both grown on an underlying and reported basis. Expectations for the year remain broadly in line with expectations, although foreign exchange translation is expected to be a headwind at current rates, it cautioned, and sales to government-funded customers remain a risk. Among its divisions, John Crane booked modest headline operating profit growth in the first quarter while Smiths Medical saw underlying revenue decline as improved hardware sales were more than offset by a weakness in demand for single-use consumables, it explained.Smiths Detection, which designs and manufactures sensors that detect and identify explosives, nuclear weapons, narcotics and chemical agents, delivered strong underlying revenue and headline operating profit in the first quarter against a weak comparator period. The order book for the full year remains slightly below the equivalent point last year, it added.Smiths Interconnect, which provides electronic connectors and cabling for the wireless telecommunications, aerospace, defence, medical, rail and industrial markets, said it experienced lower underlying revenue and headline operating profit. Growth in Power was offset by lower revenues in Microwave and Connectors after a slowdown in demand from defence customers and on-going weakness in Europe.Elsewhere Flex-Tek, a provider of engineered components that heat and move fluids and gases for the aerospace, medical, industrial, construction and domestic appliance markets, made good progress growing underlying revenue through a strong performance in US residential construction. Group net debt was £740m, down slightly from £744m at July 31st 2013.CJ