Rotork revenues rise 9.9 per cent

Valve engineering group Rotork has reported a strong period of order intake since the start of July, with the third quarter at record levels and 24.9 per cent higher than the prior year.

Revenues were 9.9% up on the previous year, while cumulative revenue to October 28th was 17% ahead of the same period in 2011.

"As last year, we anticipate a strong fourth quarter in terms of revenue as projects are delivered out of the order book," the firm said.

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"Due to our continued success on major international projects, we have a greater proportion than normal of our current order book due to be delivered over a longer time frame, with deliveries in 2013 and, in a number of cases, in 2014.

"The group continues to generate industry leading margins and we anticipate these will be higher in the second half than the first half, with full year margins slightly lower than the prior year. Operational gearing has been beneficial, however changes in divisional mix, with the record performance of Fluid Systems, and costs related to the introduction of a number of new products have reduced group margins."

At the end of October the order book stood at £190.8m, 16.5% higher than the same point last year.

Divisionally, Rotork Control's cumulative order intake at the end of October was 8.3% up on the same period last year, and said a number of markets are performing well with Russia, North America and Australia delivering particularly strong results.

Rotork Fluid Systems was the fastest growing division and order intake in the third quarter was 47.2% higher than the same period last year. Cumulative order intake to October 28th was up 32.7% on the prior year.

Cumulative order intake to the end of October in the Rotork Gears business was 22.4% ahead of the prior year.

The company added: "Based on the strong performance year to date, our record order book and diverse end market exposure, the board continues to expect further progress in the full year, with margins slightly lower than those seen in 2011."

NR