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Rotork sees improvement in second-quarter revenue

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(Globalpost/GlobalPost)

(Reuters) - Britain's Rotork Plc <ROR.L>, which makes valve-control systems for the oil, gas and water industries, said it expects second-quarter revenue to rise more than the first quarter due to higher deliveries, particularly in its fluid systems business.

First-quarter revenue rose 5 percent, while order intake rose 14 percent to 150 million pounds.

Rotork said its order book stood at 218 million pounds at March 31, 2013, a rise of 20 percent from the end of 2012.

"People would have expected revenue growth to be higher in the first quarter, but actually it's just a timing issue, by the half year they'll be happy again," Chief Executive Peter France told Reuters.

Rotork's fluid systems business - its second-largest revenue contributor - designs and makes pneumatic and hydraulic actuators. Order intake in the unit rose 27 percent during the quarter.

The business benefits from industry investment in the oil and gas sector and is most active in the United States, Latin America, Australia and Middle East, the company said.

Rotork acquired actuator maker Schischek for 41 million euros in January to enhance its exposure to the explosion-proof-actuator market and boost its controls unit, which contributes nearly 60 percent to revenue.

"Acquisitions should underpin growth forecasts and we expect double-digit growth this year," Numis Securities analyst Scott Cagehin said in a note.

The company's electric, pneumatic, and hydraulic actuators and control systems are also used in marine, mining, food, pharmaceutical and chemical industries.

Shares in the FTSE 250 component were trading up 3.7 percent at 2800 pence at 09:57 a.m. on Friday on the London Stock Exchange. The stock has risen about 6 percent since the acquisition.

(Reporting by Abhirup Roy in Bangalore; Editing by Roshni Menon)

http://www.globalpost.com/dispatch/news/thomson-reuters/130426/rotork-sees-improvement-second-quarter-revenue