Rotork revenues feel squeeze from parts shortages

Flow control and instrumentation maker Rotork said second half revenue would be squeezed as supply-chain pressures continued.

Sales for the second six months of the year would be similar to the first half with adjusted operating margins “slightly ahead”, the company said in a trading update for the four months to October 31.

Rotork said revenues for the period had fallen due to a shortage of parts.

“In the last few months component sourcing has become even more challenging and deliveries of materials sourced from Asia Pacific regularly delayed, sometimes with little notice,” the company said.

“Most affected have been chipsets and electronics, critical components of our electric actuators. The result has been closures of production lines that have in some cases lasted several weeks.”

Rotork said order growth had continued over the summer and through October but it anticipated to continue “at least in the near term”.

Order intake in the four-month period was up a high single digit percentage year-on-year on a constant currency basis with each division's orders ahead, it added.

“We anticipate entering 2022 with a record year end order book,” Rotork said.