StockMarketWire.com - Rotork, an actuator manufacturer and flow control company, grew its order intake by 11.8%, or 7.9% on an organic constant currency (OCC) basis, in the third quarter.

Revenue increased by 5.1% (+0.9% OCC), reflecting a continuation of the slightly more favourable market trends seen during the first half of the year.

Year-to-date (to 29 October 2017) order intake was up 15.3% (+6.2% OCC) with an 8.9% increase in revenue (+0.8% OCC).

The order book at 29 October 2017 was £219.4m, 21.4% (23.2% OCC) higher than at 31 December 2016.

Rotork said the results for the third quarter reflect a continued improvement in levels of activity in upstream, with a slight increase in downstream over the comparative period in the prior year.

Midstream remained challenging. There was good progress across the water, power and industrial process markets. Geographically there was growth in the Middle East, parts of Asia, North America and Europe while Latin America remained subdued.

The company said it is committed, over time, to returning Rotork to the higher levels of organic growth and margins previously delivered by the group.

This will require a significant increase in investment in new products and service, funded primarily by a reshaping of sales and operating infrastructure.

It is engaged in a series of reviews to examine our routes to market, innovation funnel, operations footprint, supply chain, talent development and IT systems. The one-off costs associated with these reviews, together with any restructuring costs arising from early implementation, are anticipated to be mid-single digit millions for 2017.

The group had net debt of £39.0m at 29 October 2017 (£55.0m at 31 December 2016).

"Based on our performance to date, anticipated shipments in the remaining two months of the year, and a slightly reduced tailwind from currency, results for the full year remain in line with management expectations," it said.


At 8:02am: [LON:ROR] Rotork PLC share price was -0.05p at 260.45p



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