Rotork Q3 orders buoyed by fluid systems business

Nov 16 2012, 20:37 IST
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SummaryRotork shares, risen 20% so far this year, closed at 2,323 pence on the London Stock Exchange

Rotork Plc, which makes valve actuators and other control systems for the oil and gas industries, said orders rose 25 percent in the third quarter, boosted mainly by strong demand at the company's fluid systems business.

Revenue rose nearly 10 percent for the three months ended September.

Rotork forecast a strong fourth quarter as it completes projects on the order book. But said it expects margins to be slightly lower than a year earlier.

Third-quarter order growth was driven a 47 percent growth in the company's fluid systems business, which designs and makes pneumatic and hydraulic actuators and accounts for about 30 percent of the company's revenue.

The demand for our products remains strong with North and South America, Middle East and China seeing the greatest growth. The strength of the LNG market in Australia has also benefited Fluid Systems, the company said.

Larger peer IMI Plc, which makes valves, power-generation equipment and fluid control systems, also said on Friday that trading in the second half was in line with expectations.

IMI had warned in August that the weakening European economy could slow down growth.

Rotork shares, which have risen 20 percent so far this year, closed at 2,323 pence on the London Stock Exchange on Thursday. IMI shares closed at 942 pence.

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