Technology firm Smiths Group Plc. (SMIN.L) in its interim management statement, said that underlying headline operating profit for the nine months to 4 May 2013 was also ahead of the same period last year. Headline operating margin improved in all divisions except Smiths Medical which invested substantially more in sales and marketing in higher growth markets and incurred additional expense from the US medical device tax. Overall, expectations for the year remain in line with the prior outlook, albeit with a slightly different mix by division.
The company said in March that it expected tough trading conditions for the second half as a result of the US medical device tax, slower demand in some parts of John Crane, and the impact of further government budget cuts. However, despite these challenges, there remain significant opportunities to generate value for shareholders over the medium term.
The company today said that John Crane delivered sustained underlying revenue growth in the first nine months, with flat revenues to first-fit OEM customers and continued growth in the aftermarket. Headline operating margin rose as a result of productivity gains and favourable price/mix, while investing in growth drivers such as new product development. The order book was ahead of last year with a positive book-to-bill ratio. As a result, the outlook has improved and it now expect second half sales to be ahead of the same period last year.
The company noted that Smiths Detection grew both underlying revenue and headline operating profit in the first nine months. Headline operating margin, although ahead of last year, has been affected by changes in contract mix. This was caused by a shift in the anticipated timing of certain contracts, reflecting pressures on government spend and delays to airport infrastructure programmes. These contract delays are expected to result in second half sales below the strong level achieved last year. Headline operating margins for the full year are expected to be at a similar level to last year.
The headline effective tax rate for the full year is expected to be slightly below the rate reported at the half year.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.