London-listed steam-system engineering company Spirax-Sarco Engineering has revised its full-year sales guidance after a disappointing performance from all three of its businesses over the four months ending October 31. However, the company remains optimistic about returning to growth in the coming year.
Spirax-Sarco Engineering now projects a 1% to 2% decline in sales for the year ending December 31, compared to last year’s £1.73 billion ($2.15 billion). This is a revision from the previous guidance of 0% to 4% growth.
Operating Profit Margin Expectations
Despite the reduced sales forecast, the company anticipates a slight improvement in the year-on-year adjusted operating profit margin. This is expected to be in line with market forecasts, building on the 20.2% margin achieved in the first half of the year.
Consensus estimates for Spirax-Sarco Engineering’s sales for the year stand at £1.72 billion. Adjusted operating profit is projected to be £360 million, with a range of £345 million to £389 million.
As Spirax-Sarco Engineering looks toward the future, it aims to regain momentum and achieve growth in the coming year.