UK engineer Smiths Group trims revenue outlook on hit to Middle East sales

* Smiths Group cuts annual organic revenue growth forecast ​to 2% ⁠from previous 3% to 4%

* John ​Crane unit's revenue sees £10 million hit, resulting in flat third-quarter group organic sales, order book grows

* CEO Roland ​Carter ‌cites energy security demand supporting medium-term outlook (Updates with details throughout, CEO comment in paragraph 5, shares ⁠in paragraph 6, operating profit margin forecast paragraph ⁠8)

May 21 (Reuters) - Britain's Smiths Group ​cut its annual revenue forecast on Thursday as it took a £10 million ($13.43 million) hit from disruption caused by the war in the Middle East in the third quarter, ​though ‌it stuck to its profit outlook on cost-saving measures.

The conflict has hit Smiths' John Crane unit, which supplies components to a range of industries including oil and gas, resulting in flat group organic revenue in the three months ended May 2, ​though the order book strengthened.

Iran effectively closed a key transit route through ‌the Strait of Hormuz in response to U.S. and Israeli attacks that started the war on February 28.

Smiths now expects ‌annual organic revenue growth of around 2%, down from an earlier forecast of 3% to 4%, assuming continued disruption to its Middle East sales, which account for 7% ​of total sales.

"Whilst this moderates growth in the near term, it is set against a backdrop ‌of increasing global demand for energy security and resilience, and we are well positioned to support our customers," CEO Roland Carter said in a statement, noting confidence in the ⁠group's ⁠medium-term outlook.

The company's shares were up 0.4% at 0756 ‌GMT.

The FTSE 100 company has been reshaping its portfolio through the sale of Smiths Interconnect and ​the planned divestment of ​Smiths Detection under its Acceleration Plan.

Smiths Group said it ‌now expects a headline operating profit margin slightly above the 20% it guided towards earlier, supported by its cost-cutting efforts.

Smiths Group