Q3 2010/11 Interim Management Statement

Invensys plc, the technology group, is today publishing the following Interim Management Statement covering the period since 30 September 2010:

INTERIM MANAGEMENT STATEMENT

Outlook
Our performance for the quarter was on track and we continue to expect the Group to deliver improved performance in the current year.

Q3 performance
In the third quarter, the Group performed in line with management expectations with operating profit1 equivalent to the corresponding period last year.

At Invensys Operations Management, the recovery in industrial capital expenditure produced strong growth in order intake in the quarter. Good revenue growth in the period was also driven by the conversion of its order book, especially in respect of the commencement of recently awarded large greenfield projects in emerging markets. As previously indicated, initial margins on some of these projects are slightly lower than the average for the division which, together with continued investments in sales and marketing, resulted in operating profits in the quarter in-line with last year.

At Invensys Rail, orders were down year-on-year reflecting the uneven order intake in the division as we await the outcome of bids on several large contracts. Operating performance in the quarter was good with revenue growth and operating margin returning to our medium-term expectations, leading to an increase in operating profit compared with the corresponding period last year. We continue to monitor closely the three mass transit contracts mentioned in the Half Year Results Statement on 4 November 2010; we have made progress in the period with project implementation and continue to negotiate the recovery of the additional costs through variation orders.

Invensys Controls produced a resilient performance in the quarter during which, as expected, it experienced some softening in demand, particularly in North America. This resulted in a small decline in revenue and operating profit compared to the corresponding period last year.

1. References to operating profit and operating margin are arrived at before exceptional items

Financial position
Net cash at 31 December 2010 was £257 million (30 September 2010: £336 million), reflecting the seasonal cash flows in the businesses, the payment of £42 million in respect of the Baan minority and a number of other non-trading cash items such as dividends and a deficit reduction payment into the UK Main Pension Scheme.

Contact:
Invensys plc Steve Devany tel: +44 (0) 20 3155 1301
Annabel Michie tel: +44 (0) 20 3155 1303

Financial Dynamics Andrew Lorenz
Richard Mountain tel: +44 (0) 20 7269 7291