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IMI Expects FY19 Results To Be In-line With Market Expectations

IMI plc (IMI.L), a specialist engineering company, said Thursday that based on current market conditions, it expects full-year 2019 results to be in-line with current market expectations.

The company noted that trading in the third quarter for each of its divisions has continued largely as expected.

Revenues for the third quarter were down 2 percent on an organic basis compared to the prior year. Before adjusting for the impact of foreign exchange movements, revenues were flat on an adjusted basis. Despite lower sales, the Group said it achieved higher margins in the quarter.

Looking ahead to the second half of 2019, IMI continues to expect that organic revenue will experience a decline similar to that in the first half, when compared with the same period in 2018.

Nonetheless, the company expects second-half profits to be similar to last year, supported by the business improvement initiatives pursued by each of the three divisions.

IMI said its strategy review confirmed it has significant value creation opportunities across its businesses.

IMI Precision is targeting a further 35 million pounds in annualized savings from a new 75 million pounds multi-year restructuring to streamline its business and address supply chain complexities in both Europe and the Americas.

As some of these plans have been initiated, the company now expect the full-year Group charge in 2019 to be about 55 million pounds.

IMI Critical has placed under review lower-margin businesses accounting for
20 percent to 30 percent of revenue, as their products may not meet the Group's long-term growth and margin aspirations.

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