Smiths Group has issued a trading update for the last six months announcing sales and profit growth in line with management expectations.
According to Smiths, the detection part of the business demonstrated strong underlying sales growth due to contract wins for the aTiX airport X-ray system, plus the JCAD advanced non-radioactive chemical point detector and significant contracts for high energy x-ray cargo screening systems. Speciality Engineering also performed well with increased sales and margins. Overall net debt was approximately £650m at the end of the period.
However, these performances have been offset by a Smiths Medical’s performance which was described as flat, with reported sales and margins were similar to the same period last year.
Smiths blamed the weak performance on two specific supplier issues in the Critical Care part of their medical area, but said they are now largely resolved. Smiths announced the completion of the transfer of key production plants in Hythe, UK, and Kircheeson, Germany, to lower cost regions and satisfactory growth was reported in other parts of their medical business.
A more detailed update will be released by the company on March 19 2008.