Invensys Q3 2006/07: overall progress

2006/07 Third Quarter results for the three months ended 31 December 2006

Operational improvements demonstrate continued progress
Q3 Highlights

  • Orders from continuing operations(1) were £630 million (Q3 2005/06: £658 million), unchanged at constant exchange rates (CER);
  • Revenue from continuing operations was £637 million (Q3 2005/06: £611 million), up 10% at CER;
  • Operating profit(2) from continuing operations was £56 million (Q3 2005/06: £46 million), up 29% at CER;
  • Operating margin(2) for continuing operations was 8.8% (Q3 2005/06: 7.5%);
  • Net profit was £42 million (Q3 2005/06: £3 million loss);
  • Basic earnings per share from continuing operations were 4.0 pence (Q3 2005/06: 0.8 pence loss per share);
  • Operating cash inflow from continuing operations excluding legacy items was £56 million (Q3 2005/06: £64 million);
  • Free cash inflow excluding legacy items was £43 million (Q3 2005/06: £47 million);
  • Net debt at 31 December 2006 was £249 million (30 September 2006: £291 million).

Ulf Henriksson, Chief Executive Officer of Invensys plc, commented:
”I am pleased that we have made further overall progress in the third quarter which has enabled us to report another good set of results.

“Process Systems produced another strong performance. Rail Systems showed good revenue growth although order intake was impacted by the phasing of Network Rail project bookings in the UK. Controls produced another satisfactory result despite the weakness in those businesses supplying the US new residential construction market and I am encouraged that APV produced a profit for a fourth consecutive quarter.

“Financing charges were significantly reduced due to the benefits of the 2006 Refinancing(3), resulting in a net profit in the quarter of £42 million compared with a small loss in the third quarter last year. Operating cash flow, although lower than last year, was strong at £56 million representing 100% conversion.

“With the improved performance in the period and continued progress in achieving a balance of results between quarters, the Board remains confident of a satisfactory outturn for the financial year as a whole.”

Notes

  • 1. Continuing operations are Controls, Process Systems, Rail Systems, APV and Eurotherm. Discontinued operations in 2006/07 comprise Invensys Building Systems operations in the US and Asia Pacific (IBS) and, in addition, ABS EMEA, Lambda and Baker in 2005/06.
  • 2. All references to operating profit (OPBIT) and operating margin in this announcement are before exceptional items.
  • 3. Definitions used in the Prospectus dated 25 May 2006 shall have the same meanings when used in this announcement, unless the context requires otherwise.

Safe Harbor
This announcement contains certain statements that are forward-looking. These statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Forward-looking statements are not guarantees of future performance. The Group’s actual results of operations, financial condition and liquidity, and the development of the industries in which the Group operates, may differ materially from those made in or suggested by these statements and a number of factors could cause the results and developments to differ materially from those expressed or implied by these forward-looking statements.

For the full text of the Invensys Q2 2006/07 press release visit the Invensys Results Day Centre

Auteur: Redactie Infrasite

Bron: Invensys Group