logo-loader
viewSmiths Group

Smiths Group says coronavirus disruption “changing daily”

While the engineer's supply chain is being affected, factories and facilities accounting for more than 90% of manufacturing capacity are still open

Smiths Group -
Production of Smiths Medical's portable ventilator is being ramped up

Smiths Group PLC (LON:SMIN) said disruption from the coronavirus pandemic is now having an accelerating effect on both demand and supply. 

The FTSE 100 engineering conglomerate, which last week revealed that it was postponing the demerger of its medical arm due to impact of coronavirus, said trading in the three months to the end of March saw disruption only on the Chinese operations of its John Crane and Interconnect businesses.

But the impact of the outbreak is now intensifying, with “generally weaker demand” in all parts of the group except Smiths Medical, with some customers unable to accept deliveries as their premises were closed, reductions in spending in John Crane’s oil and gas markets and Smiths Detection’s airport markets. 

Medical has seen a significant increase in demand globally for critical care devices, including ventilators, and Smith is working as part of a consortium to increase the production of its paraPAC plus ventilator for the UK government, with discussions taking place with other governments for similar increases.

Smiths' supply chain is also being affected, though factories and facilities accounting for more than 90% of manufacturing capacity were still open; however, the situation was “changing daily”. 

As a result, management withdrew guidance for the full year, saying: “Although we believe that we are in a strong position as we enter this period of high uncertainty, it is too early to assess the full impact of COVID-19.”

Having last week revealed that its balance sheet at its half-year point of 31 January showed net debt of £1.3bn and total available liquidity in excess of £850mln, today Smiths said half-year profits rose 20% to £145mln on revenue up 8% to £1.2bn.  

Quick facts: Smiths Group

Price: 1306.5 GBX

LSE:SMIN
Market: LSE
Market Cap: £5.18 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

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...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Amundi Physical Gold ETC: Europe's cheapest ETC now trading on the London...

Amundi Physical Gold ETC's Ashley Fagan who's head of ETF, Indexing & Smart Beta Development for UK and Ireland introduces the product to Proactive London's Andrew Scott. She says they've seen a great deal of demand from European as well as UK investors and that's what lead them to list...

2 days, 4 hours ago

2 min read