Spirax-Sarco reports improved outlook for 2014 results

7th Nov 2014 12:35

Steam control valves and pump manufacturer, Spirax-Sarco Engineering, announced an improved outlook for full-year results due to an easing of currency headwinds.For the four-month period ended 31st October, the firm reported a 5% growth in organic sales across all company segments, mirroring first half results.The trading statement soothed investor worries by outlining better-than-expected sales forecast, with newly revised expectations for a 6.3% year-on-year drop if current exchange rates prevail, rather than the 6.8% decline guided to in August.This year's operating profits are now expected to be around 10% lower than last year's figure, a mild improvement against previous guidance for a 11% drop.The report noted that operations in Europe, Middle East and Africa for the period were progressing well. Recent growth in North America and certain emerging markets, particularly in the Americas and Asia Pacific, has been driven by the company's recent acquisition of Bio Pure.Moreover, the recent weakening in the pound, which had strengthened against most major currencies earlier in the year, is also thought to have increased international demand for the firm's products and services outside the UK.Investec analyst, Michael Blogg, the company's statement "reads well". He said: "Organic revenue growth has accelerated since the first half and profit indications are reassuring. [...] Our estimates and target price are under review, with upward pressure on both."As of 11:21 on Friday, Spirax's share price rose 2.00% to 2,881.00p per share.