By Introduction
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.
Sales Outlook
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.
Financial Estimates
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.
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