Trading Update
Posted 15 April 2004Trading Update
Invensys today confirms that full year trading for the Group was in line with expectations.
Sales1 in Process Systems2 were slightly ahead. Although markets remained challenging for most of the year, the Group’s greater financial stability following its refinancing contributed to a strengthening of orders in the fourth quarter. Better project controls and progress on performance initiatives delivered some improvement in operating3 margin in the second half.
Eurotherm’s sales and orders were helped by a late pickup but, as expected, operating profit reflected the lower margins of its growing Asia Pacific revenues.
Sales in APV were ahead of last year, although - in line with competitors - the business experienced a late slowing of orders as major customers delayed their investments. Operating profit for the second half was also reduced by write-offs relating to prior periods, as highlighted during the recent refinancing.
Rail Systems showed good growth in sales and operating profit. Excluding the London Underground PPP contracts, the backlog decreased slightly, affected by delays in order placement by Network Rail in the UK and in the passage of the US Transportation Bill.
Sales in Climate Controls fell, largely reflecting the disposal of local contracting businesses; but overall operating profit was similar to last year. In Appliance Controls, sales recovered after a difficult first quarter to strengthen operating margins. Both businesses were experiencing improved order trends as the year finished.
Management of the Group’s legacy liabilities and the ongoing reduction in corporate costs continued in line with announced programmes.
The disposal processes for both Powerware and Hansen Transmissions are progressing well.
Invensys will announce its results for the year to 31 March 2004 on 20 May 2004.
Safe Harbor
This announcement contains certain statements that are forward looking. These statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition and liquidity, and the development of the industries in which the Group operates, may differ materially from those made in or suggested by these statements and a number of factors could cause the results and developments to differ materially from those expressed or implied by these forward looking statements.
For more information please contact:
Victoria Scarth / Mike Davies - Invensys
tel: +44 (0) 20 7821 3755
fax: +44 (0) 20 7821 3709
Nick Claydon / Mike Smith - Brunswick
tel: +44 (0) 20 7404 5959
fax: +44 (0) 20 7831 2823
About Invensys
Invensys is a global automation, controls and process solutions Group. Our products, services, expertise and ongoing support enable intelligent systems to monitor and control processes in many different environments. The businesses within Invensys help customers in a variety of industries - including hydrocarbons, chemicals, oil and gas, power and utilities, rail, telecommunications, paper, food and beverage, dairy, pharmaceuticals and personal care - to perform with greater efficiency, safety and cost-effectiveness.
Process Systems provides products, services and solutions for the automation and optimisation of plant operation in the process industries. APV specialises in process equipment engineered into systems and asset services for food, beverage, personal care, pharmaceutical and chemical clients. Eurotherm is a leading supplier of control and measurement instrumentation solutions and services to industrial and process customers. Rail Systems is a multinational leader in the design, manufacture, supply, installation, commissioning and maintenance of safety-related rail signalling and control systems. Climate Controls is a major provider of the components, systems and services used across the world to make commercial and residential environments safer, more comfortable and more efficient. Appliance Controls has the broadest system and component offering for the appliance industry worldwide.
Invensys PLC is listed on the London Stock Exchange. With 39,000 employees
operating in 60 countries, Invensys helps customers to improve their performance
and profitability, building value for end users and shareholders alike.