Statement on Trading
11/01/2001
This trading statement precedes the group's preliminary results announcement due on 13 March 2001. Order intake growth in the group's core businesses has been maintained and profit before tax and exceptional items for the year 2000 is expected to be in line with market expectations.
- Growth in order intake since the interim results has been maintained overall, though tempered by a slowdown in the US during November and December due to weakening economic conditions.
- At Esab, sales performance reflected the strengthening of economic conditions in Europe, South America and Asia Pacific. However, as noted above results will reflect the impact of the slowdown in North America, currency transaction costs in Europe and the effects of the extended Lincoln bid.
- Howden has strengthened its competitive position, increased its bid success rate and is benefiting from some recovery in major infrastructure project activity. The two largest business areas of Power and North America continued to perform well, although overall results were affected by a poor performance in the systems business due to delays in orders for large tunnel ventilation projects. A number of significant contracts were won in the second half including the Mont Blanc tunnel, Bangkok Metro and YuYuan tunnel in China, but delivery lead time prevented sales in 2000.
Commenting today, Nigel Smith, Chief Executive said:
"Order intake growth in both our core businesses has been maintained despite the slowdown in North America. Action programmes in Esab have been launched and will be progressed in 2001, to restore customer confidence and reinvigorate the business following the uncertainty created by the Lincoln bid. Howden's competitive position continues to improve, with a number of prestigious contracts won in the second half of the year. I am confident that with our global position and a determined management team, we will deliver an improved performance in 2001."
Contact
Nigel Smith, Chief Executive; Nigel Robson, Finance Director; Neil Jamieson, Head of Investor Relations +44 (0)20 7838 7071
Andrew Fenwick, Brunswick +44 (0)20 7404 5959