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Rotork FY17 Profit Down, Revenues Rise; Ups Dividend; Warns On FY18 Results

Rotork plc (ROR.L) reported Tuesday that its fiscal 2017 profit before tax fell 11.5 percent to 80.59 million pounds from last year's 91.07 million pounds.

Earnings per share declined 17 percent to 6.4 pence from prior year's 7.7 pence.

Adjusted profit before tax was 124.8 million pounds, compared to 117.9 million pounds a year ago. Adjusted earnings per share were 10.5 pence, compared to 10.0 pence a year ago.

Revenue for the year increased 8.8% to 642.2 million pounds from 590.1 million pounds last year. On an OCC basis, revenue increased 2.3%, reflecting the traditional lag in order activity flowing through to revenue.

Order intake increased 15.6% on the prior year, or 8.2% on an OCC basis, to 666.5 million pounds, reflecting an improvement in several of end markets.

Further, the company said its Board is proposing a 6.3% increase in the final dividend to 3.35p per share. The total dividend for the year of 5.40p represents a 5.9% increase in dividends over the prior year.

Looking ahead, the company said its revenue forecasts for 2018 currently reflect improving order momentum, pointing to mid to high single digit organic revenue growth year on year. However reported results will be impacted by currency movements. Based on current rates, the company expects a 4-5% headwind on both revenues and profits compared with last year.

Adjusted operating margins are expected to be similar, with contributions from higher volumes offset by increased investments in new products, expansion of service infrastructure, and accelerated investment in systems and IT capabilities.

by RTTNews Staff Writer

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