Aggreko Sees Accelerated 2nd Half Growth, Fiscal Year Trading Profit With Views

Aggreko PLC (AGK.LN), a supplier of temporary power and temperature control, Monday said the rate of underlying growth seen in the first quarter has accelerated in the second quarter, and the Group expects to deliver a strong underlying performance in the first half as a whole, and added that trading profit for the year is expected to be in line with previous guidance.

MAIN FACTS:

-The company anticipates that, in the first half, Group revenue in constant currency and excluding pass-through fuel will be 9% higher than 2010.

-Trading profit is expected to be similar to 2010, representing 20% growth in revenue and 17% growth in trading profit on an underlying basis

-In International power projects, 1H revenue in constant currency and excluding pass-through fuel is expected to be around 22% higher than in 2010.

-The year-on-year growth in MW on hire has accelerated from 14% at the start of the year, and is likely to be around 25% at the start of the second half; order intake for the first half will be at least 530 MW.

-Anticipates that Local business revenues in the first half will be broadly similar to 2010 in constant currency, but will grow by 17% on an underlying basis

-Outcome for the year as a whole will be heavily dependent on trading during the peak summer season.

-The company has decided to raise the rate of fleet investment by a further GBP30 million, taking forecast fleet capital expenditure for the year to GBP420 million.

-Believes the rate of growth in underlying profits for the year as a whole will be a little higher than the 20% underlying Trading Profit growth previously expected

-Reiterates previous guidance for headline Trading Profit for the year to be slightly ahead of 2010

-Shares closed Friday at 1911 pence valuing the company at GBP5.25 billion.

-By Peter Evans, Dow Jones Newswires; 44-20-7842-9308; [e-mail]