IMI hit by tough US vehicle market in third quarter
Engineering giant IMI said that second-half trading has been in line with expectations so far though it did highlight some weakness in its Fluid Power division, owing to a tough US vehicle market.
Engineering giant IMI said that second-half trading has been in line with expectations so far though it did highlight some weakness in its Fluid Power division, owing to a tough US vehicle market.
Group organic revenues, which adjust for acquisitions and exchange rate movements, were up 3% in the four months to the end of October and were 4% higher for the first 10 months of the year. Reported revenues meanwhile were up 5% and 6%, respectively.
However, volumes in the IMI's largest division, Fluid Power, which accounted for a third of group sales last year, had weakened as anticipated, the company said. In the four months to the end of October, Fluid Power organic revenues fell 4% and were down 2% in the year-to-date. "The principal contributor to this decline has been the commercial vehicle sector, most notably in the US, with revenues down 8% for the four months to the end of October," the firm said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Elsewhere, the company's units have held up well with: 15% organic growth seen in the Severe Service unit, its second-largest division which accounted for a quarter of group sales last year; 2% organic growth in Indoor Climate; flat revenues in Beverage; and 6% organic growth in Merchandising.
The company said it has retained a strong balance sheet with year-end net debt expected to be between £150m and £170m "following a seasonally strong second-half cash performance". However, this is still significantly up from the £108m of net debt at the end of the previous fiscal year.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
CrowdStrike IT outage: a global meltdown
Millions were affected by the CrowdStrike IT outage recently, which grounded flights and took the news off the air. Was this just a hiccup or a warning of much worse to come?
By Simon Wilson Published
-
Revolut finally bags a UK banking licence – what's next for the fintech?
Revolut has finally been granted a UK banking licence following three years of negotiations with the regulator
By Kalpana Fitzpatrick Published