(Alliance News) - Rotork PLC shares fell on Thursday as the flow-control products company flagged material delivery delays as supply chain strife persists.
The stock was down 7.3% at 344.51 pence each in London on Thursday morning. It was the worst mid-cap performer.
Bath-based Rotork, which serves the energy, water and chemical industries, said order intake has remained strong, but supply chain disruption is set to continue at least in the near-term.
The FTSE 250 constituent said order intake in the four months to October 31 was up a "high-single-digit percentage" year-on-year on an organic constant currency basis.
Less positively, Rotork said component sourcing over the past few months has become difficult, resulting in revenue over the four-month period being down year-on-year and hitting margins.
"The growth in order intake seen in the second quarter has continued over the summer and through October, in-line with our expectations. However, we anticipate the supply chain disruption currently being experienced will continue at least in the near term," said Rotork.
"In the last few months component sourcing has become even more challenging and deliveries of materials sourced from Asia Pacific regularly delayed, sometimes with little notice. Most affected have been chipsets and electronics, critical components of our market leading electric actuators."
Rotork added that production lines have been forced to close for "several weeks", in some cases. This meant that revenue for the four-month period is lower year-on-year on an organic, constant currency basis.
Rotork said its own internal efforts have benefited adjusted operating profit margins.
It cautioned, however: "The benefits compared to the prior year period were more than offset by the impact of the significantly reduced volumes, operational inefficiencies and increased logistics costs."
Rotork expects second half revenue similar to the first half with adjusted operating margins "slightly ahead" of the first half.
By Eric Cunha; ericcunha@alliancenews.com
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Rotork (ROR)