IMI says third quarter trading somewhat better than expected following ventilator demand surge

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IMI PLC (LON:IMI) has said its third quarter trading has been “somewhat better than previous expectations” as sales in the period were supported by what the company said was an additional surge in demand for ventilators.

In an update for the three months to September 30, the engineering group said revenues for the period were 1% lower year-on-year (YOY), with the uptick in ventilator demand adding £40mln to the figure. As a result, IMI said they now estimated the full year effect of the one-off ventilator demand surge will be £85mln compared to the £70mln estimate in its half-year results in July.

Elsewhere in the business, higher revenues in the firm’s precision engineering division were up 3% YOY in the quarter, while revenues in critical engineering and hydronic engineering both declined by 4%.

Based on current market conditions, the third quarter trading and “no significant escalation of coronavirus-related disruption”, IMI said it now expects to deliver full year adjusted earnings per share of between 74p-78p.

“Thanks to the dedication, courage and continuing diligence of our employees, the direct impact of Coronavirus on the business has continued to be contained. We will maintain our vigilance and strict operating protocols for as long as necessary to ensure we minimise this ongoing risk”, IMI said in a statement.

Shares in the firm were up 0.3% at 1,069p in early trading on Wednesday.

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