Smiths Group, the global technology firm listed on the FTSE 100, said that its full-year guidance remains unchanged after underlying revenues and profits in the first three quarters were ahead of last year.
The company said that margins in all divisions except one improved on last year. "Overall, expectations for the year remain in line with the outlook given at the interim results in March, albeit with a slightly different mix by division," the firm said on Friday.
The outlook for the John Crane division - providing services for major process industries including oil. gas and power generation - has improved over the last few months. The company had previously warned of slower demand in the second half but said on Friday that the unit delivered "sustained underlying revenue growth" and higher order book than last year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Continued sales growth was also seen in the medical device and equipment subsidiary, Smiths Medical, though profitability was behind last year due to additional investment as well as the introduction of the US medical device tax in January, which the company warned about in March.
Smiths Detection, which makes sensors to detect explosives and other dangerous materials, saw an improvement in both the top and bottom lines. However, the company said that second-half sales and margins will be affected by timing issues with some contracts, "reflecting pressures on government spend and delays to airport infrastructure programmes".
The electronic components division, Smiths Interconnect, is expected to have a "challenging" final quarter, despite delivering underlying growth in the first nine months, due to a strong prior-year comparator and uncertainty in several end market "particularly with on-going weakness in Europe and the risk of US defence budget cuts".
Meanwhile, things were a little brighter at the fluid management unit, Flex-Tek, where the company has seen growth in revenue and profit due to a strong performance in aerospace and US residential.
-
Who is the richest person in the world?The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
-
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
