Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Rotork shares weak as engineer expects currency headwind on revenues and profits

The FTSE 250-listed engineer said its 2017 pre-tax profits fell by 11.5% to £80.6mln, down from £91.1mln a year earlier, although revenue increased by 8.8% to £642.2mln
machinery
Martin Lamb, Rotork's executive chairman, said: "Based on current rates we can expect a 4-5% headwind on both revenues and profits compared with last year."

Rotork PLC (LON:ROR) shares shed nearly 5% on Tuesday after the industrial flow control equipment manufacturer reported a fall in 2017 pre-tax profits and said it expects a 4%-5% currency headwind on both revenues and profits in 2018.

The FTSE 250-listed engineer said its 2017 pre-tax profits fell by 11.5% to £80.6mln, down from £91.1mln a year earlier, although revenue increased by 8.8% to £642.2mln, up from £590.1mln the year before.

READ: Rotork upgraded by HSBC, which sees more orders on back of oil price rise

The group said its underlying operating profit increased by 8% to £130mln, slightly below Liberum Capital’s estimate of £134mln, with a 10-basis point decrease in its adjusted operating margin to 20.3%, due to inflationary pressures.

Martin Lamb, Rotork's executive chairman, said: "Our revenue forecasts for 2018 currently reflect improving order momentum, pointing to mid to high single-digit organic revenue growth year-on-year.

"However reported results will be impacted by currency movements. Based on current rates we can expect a 4-5% headwind on both revenues and profits compared with last year."

The firm raised its full-year dividend by 5.9% to 5.40p.

In lunchtime trading, Rotork’s shares were down 4.7% to 272.5p.

View full ROR profile View Profile

Rotork Timeline

Related Articles

1510769053_3U2A9699.jpg
November 15 2017
Record Q1 earnings, recent financing bring Atlas the financial heft to make multiple acquisitions

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use