Spirax-Sarco reports encouraging start to 2014

20th May 2014 09:54

Engineering group Spirax-Sarco posted a near-four per cent rise in organic sales for the first four months of 2014, of which acquisitions added almost one per cent.Sales growth was strongest in the Americas, with increases in both North and Latin America, although currency headwinds reduced sales on translation, leaving reported sales marginally lower than the prior year. Group operating profit was ahead of the comparable period in 2013 both on a constant currency and on a reported basis, largely reflecting the contribution from higher sales and relatively flat material input costs, Spirax said. In Asia Pacific, the group built a larger project-based backlog than in the comparable period, leading to flat organic sales and supportive of relatively stronger second half sales in that region. "We continue to assume that our markets will exhibit low levels of growth, in line with modest overall improvement in Industrial Production growth through the course of 2014," the company said. "Although strong currency headwinds persist, we remain focused on our strategic priorities to create our own growth, which, together with our fundamental strengths, gives the board confidence that the group will make further progress in 2014."Spirax also told investors that it remained highly cash generative, with the balance increasing from £16m to £25m over the four-month period. NR