Smiths stalls, but tops forecasts

30th Sep 2009 07:21

Technology outfit Smiths Group's profits stalled last year as a number of divisions were hit by the economic downturn, but the numbers still beat forecasts, sending the shares sharply higher.The firm, which makes medical equipment and airport X-ray scanners, said headline pre-tax profit dropped to £371m from £380m in the year to July on sales up 7% to £2.67bn. Underlying operating profit rose £37m to £418m, but this included £77m from favourable currency translation and £20m from the net impact of acquisitions and disposals made during the year. Underlying headline operating profit fell 13% or £60m.Seals group John Crane lifted its contribution by £9m reflecting the benefit of its restructuring initiatives, but elsewhere the picture was bleaker.Smiths Detection's profits fell £47m driven by lower volumes. Smiths Interconnect was down £13m as a result of lower volumes, adverse mix and restructuring costs. Flex-Tek dropped £8m, also reflecting lower volumes and Smiths Medical dipped £7m reflecting lower volumes driven by diabetes and lower hardware sales as well as increased R&D costs.'The business environment deteriorated dramatically in the past year and, while Smiths Group has not been immune to the economic challenges, it remains well placed to benefit in the longer term from markets with secular growth prospects,' chairman Philip Bowman said.The dividend for the year is unchanged at 34p.