Rotork warns on profits as orders, revenue slump
Industrial instruments maker Rotork on Tuesday warned on interim profits as the coronavirus pandemic hit demand for its products globally.
The FTSE 250 company said group order intake in the first half would be 16% - 18% lower than the previous year's £362m on an organic constant currency basis, hitting adjusted interim profits.
Group revenues would be between 11% - 13% lower year-on-year, and while adjusted group operating profits would be lower, margins would be "relatively resilient".
In the April to May period, Rotork’s revenues were down 14% year-on-year on an organic constant currency basis, equalised for working weeks.
Rotork said Asia Pacific orders were modestly lower year-on-year, with demand in the Europe, Middle East and Africa region holding up better than that in the Americas.
Oil and gas orders were expected to be down slightly more than the group as a whole, with the upstream most impacted, while downstream orders were likely to hold up better, but still be down year-on-year.
In the water and power division, which provides essential products and services, the company was expecting a "resilient performance", with incoming orders anticipated to be lower year-on-year, reflecting the strong prior year period.
Chemical, process and industrial orders were likely to be down year-on-year, but less than the group.
Rotork had £125.6m of net cash as at 31 May, and recently entered into a new committed two-year revolving credit facility with its banks. The facility, which was undrawn, totalled £60m.
At 1050 BST, shares in Rotork were down 2.8% at 277.80p.