Rotork order intake hit by oil and gas uncertainty
Flow control group Rotork said its order intake declined in the first three months of 2015 as challenging conditions in the oil and gas markets persisted.
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The London-listed group said order intake in the first quarter declined 7.3% year-on-year, on the back of lower investment in upstream oil and gas markets and geopolitical tension in Russia and Eastern Europe.
The FTSE 250 group added that its Asia Pacific unit had experienced a slower-than-anticipated start to the year, while total revenue declined 6.7% in the quarter.
The group’s control division saw order intake decline 5.8%, while the fluid system arm reported a 30% drop in order intake from the previous year due to project delays and uncertainty in the oil and gas market.
However, the gears sector bucked the trend and registered a 2% increase year-on-year in order intakes, thanks to good performance in Asia and America, while the Instruments business saw order intake more than double on the back of acquisitions it made in 2014.
Rotork shares were down 1.81% to 2,386.00 at 11:15 on Friday.