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Rotork Q3 Revenues Rise; Affirms FY18 Outlook - Quick Facts

Rotork plc (ROR.L) said Thursday that it continues to anticipate a robust financial performance in 2018 and management expectations for the full year remain unchanged.

In a trading update, Rotork said its Group order intake in the third quarter decreased by 4.0 percent, or 2.0 percent on an organic constant currency or OCC basis on the comparable period.

However, revenue for the third quarter increased by 8.4 percent, or 9.9 percent OCC, reflecting the variation in the timing of project orders and deliveries compared with 2017.

Cumulative order intake up to 28 October 2018 increased 3.6 percent, or 7.0 percent OCC, with a 9.8 percent increase in revenue, or 13.0 percent OCC.

The company noted that this resulted in a book to bill of 1.02. The order book at 28 October 2018 was 204.1 million pounds, 6.0 percent, or 6.9 percent OCC higher than at 31 December 2017.

Rotork noted that the latest quarter's reflected a continued improvement in overall levels of activity, particularly in downstream, led by the delivery of further phases of the large projects in the Far East highlighted at the half year.

Upstream was lower than the comparative period, as was the power market. Industrial process markets continued the strong performance seen in the first half, whilst midstream and water showed modest growth in the quarter compared with the slight decline in the first half.

Rotork said it has recruited a Group Strategy and M&A Director to accelerate the development of its end-market strategy and address the most attractive adjacencies. It has also appointed a Group Engineering Director to bring a more uniform approach to innovation and product development opportunities.

The company noted that the transition from product to market segment orientation remains on target for the start of a phased introduction in 2019.

Looking ahead, Kevin Hostetler, Chief Executive of Rotork, said, "Based on our performance to the end of October and anticipated shipments in the remaining two months of the year, we continue to anticipate a robust financial performance in 2018 and management expectations for the full year remain unchanged."

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