Adds details on results, outlook, background
Feb 28 (Reuters) – UK-based specialised engineering firm IMI IMI.L reported a drop in annual revenue on Friday and said it expects first-half organic revenue to fall compared to last year, as the coronavirus outbreak disrupts global supply chains in the factory automation and commercial vehicle sectors.
The company, which pulls in nearly 8% of its revenue from China, said about a further 8% of revenue could be hit by either supply-chain sourcing or customer exports into China, assuming “no worsening of the current situation”.
Credit ratings agency Moody’s Investor Service cut its 2020 outlook for global auto sales earlier this week, with China taking the biggest hit as the outbreak worsens.
Shares in the company were up about 1% in early trade.
Revenue from continuing operations was down 2% to 1.87 billion pounds ($2.43 billion) for the year ended Dec. 31, mainly hurt by its precision engineering unit, which makes products for commercial vehicles, energy and rail sectors.
IMI expects first-half organic sales and profit for the unit to be around 7% to 10% lower than last year, as it continues to deal with cyclical headwinds in the factory automation and commercial vehicle markets.
The company posted flat adjusted pretax profit, while on a statutory basis, it fell 11% to 189 million pounds.
($1 = 0.7696 pounds)
(Reporting by Tanishaa Nadkar in Bengaluru; editing by Patrick Graham, Bernard Orr)
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