(Alliance News) - Spirax-Sarco Engineering PLC on Wednesday said it saw some slowing of the decline in sales in the second half of the year so far, but remains wary of the possible damage that Covid-19 resurgences could have on recovery.
In a trading update, the Cheltenham, England-based manufacturer of steam management systems said it saw some improvement in the third quarter of the year ended September 30, without providing specific figures.
Overall organic sales decline in the four months to the end October eased compared to the first half of the year.
In both the Steam Specialties and the Electric Thermal Solutions arms, the decline in organic sales slowed when compared to the first half.
Organic sales growth in the Watson-Marlow Fluid Technology arm was stronger in the four months to October than in the first half of the year, as sales to the biopharmaceutical and medical device sectors remained strong, Spirax-Sarco said.
Group operating profit margin was higher than in the first half of the year, supported by increased sales and continued cost containment actions, Spirax-Sarco said.
In the 10 months to end October, operating profit was slightly lower than the year prior.
Spirax-Sarco said it remains "highly cash generative" and maintain a strong balance sheet.
Sales and adjusted operating profit in the four months to the end of October were in line with the company's expectations, Spirax-Sarco said.
Going forward, Spirax-Sarco said the impact of Covid-19, especially with regards to the effects of second waves across the globe, remains unclear. The company said it is probable that the virus's resurgence will hold back recovery in the final quarter of the year.
Spirax-Sarco shares were down 4.3% at 11,400.00 pence each.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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