Imi Share Discussion Threads

[redips2] 20/4/2012 08:59

bloomberg like the figs anyhow.

[broadwood] 20/4/2012 08:55

Moving up nicely now.

[apad] 20/4/2012 08:38

Anyone looked at IMI cf Tricorne (run by ex IMI folk)?
apad

[broadwood] 20/4/2012 08:29

Reassuring enough statement. Should move on from here.

- International engineering group IMI said it has had a positive start to 2012 with Group revenues in the three months to end-March up 8% on a reported basis and 6% on an organic basis, after exchange rate movements.

There has been good growth in both our Severe Service and Merchandising businesses with the rest of the Group trading at similar levels to last year.

Overall IMI expects results in the first six months of the year to be in line with expectations and, based on current market conditions, it remains optimistic that the Group will make further progress in 2012.

Severe Service has had a strong start to the year with shipments for the first three months of the year up around 30% on a reported basis and, excluding the benefit from recent acquisitions, over 20% on an organic basis. This strong start partly reflects a catch up in new valve shipments as output from our Brno facility increases and we would expect year on year growth to moderate significantly in the second quarter against stronger revenue comparables from last year. The improved output from Brno, together with encouraging first quarter bookings (up over 10% on last year) gives us increased confidence of good growth for the full year.

As previously indicated, margins in the first half are expected to be at similar levels to the second half of last year reflecting a higher mix of lower margin new valve shipments and higher operational costs in Brno. Second half margins are expected to improve as both of these factors begin to unwind.

Revenues in the first quarter for the Fluid Power business were at similar levels to last year, with reasonable growth in the US and Asia offset by weaker sales in central and southern Europe. Our sector business has grown 3% in the first three months, representing 45% of total Fluid Power revenues in the period. Overall commercial vehicle revenues are up 4% year to date with a strong performance in North American trucks more than offsetting a weaker market in Europe where revenues are down almost 10%. In the remaining sector businesses the strongest performance has been in energy, whilst food and beverage is slightly down.

IMI said it is continuing to focus on margin improvement through a number of ongoing initiatives including product mix, further moves to lower cost manufacturing sites, value engineering and supplier rationalisation. At the same time it is investing in additional sales engineers and key account managers to help drive future growth, most notably in the emerging markets.

As expected, revenues in Indoor Climate, on a constant currency basis, are similar to the first quarter of last year. Whilst the new construction market in Europe remains weak, refurbishment activity, driven by energy efficiency legislation, remains robust, particularly in Scandinavia and Germany. First quarter revenues in Beverage Dispense are also at similar levels to last year, with reasonable growth in North America offset by weaker sales in the UK.

Merchandising has seen strong organic revenue growth of 14% in the first quarter. Whilst to some extent this reflects a low first quarter comparable from last year, the group is seeing good activity levels in the US, particularly in the automotive sector where dealers are investing in our merchandising solutions for their showrooms. There has also seen good growth in our European cosmetics business.

As mentioned above, in February IMI acquired two companies in the Severe Service division, Remosa and InterAtiva for a total initial cash consideration of £107m.

During the period sterling has strengthened against the Euro and is slightly weaken against the US Dollar giving an overall translational headwind. If the first quarter average exchange rates of $1.57 and €1.20 had been applied to 2011 results, it is estimated that revenue and segmental operating profit would have been respectively 1% and 2% lower.

IMI will announce its interim financial report for the six months ending 30th June 2012 on 23rd August 2012.

[broadwood] 19/4/2012 11:01

IMS tomorrow. Broker very positive.

[broadwood] 19/4/2012 07:43

Jefferies International IMI PLC 19/04/12 06:22 Upgrades Hold Buy 2 840.00 1,150.00

[deanforester] 02/3/2012 11:20

I never complain when the dividend is increased by 15%.

[alter ego] 02/3/2012 09:36

Current forecast is for 80.56p eps in year end Dec 2012. That's less than they've just announced so I expect to see it revised pdq. The business is clearly focussed, it knows what it wants to sell, who it needs to sell to and how to improve margins along the way. Short of unforeseen set backs in global economic activity, IMI should continue to prosper IMO.

[bluebelle] 02/3/2012 09:27

Agree. Haven't looked at the detail yet, but on the face of it these are a good set of figures.

[broadwood] 02/3/2012 09:25

Ticking up nicely on mostly positive Broker comment.

[alter ego] 02/3/2012 08:02

"Based on current market conditions we remain optimistic that the Group will make further progress in 2012."

confident outlook

[broadwood] 02/3/2012 07:23

Results look pretty satisfactory.

[broadwood] 01/3/2012 10:26

Results up and coming.

IMI announced this morning that it had spent £22m in cash on buying Brazilian isolation valve business Grupo InterAtiva, which is expected to provide a "strong platform for IMI's existing severe service isolation valve brands."

[bluebelle] 20/2/2012 11:29

Positive mention in the Sunday Times yesterday.

[bluebelle] 17/2/2012 08:57

Yes, on the face of it they seem to be a good strategic fit.

[pip] 17/2/2012 08:11

Another acquistion albeit small, this time in Brazil. IMI obviously want world domination in valves for severe applications - whatever that means! - but it sounds good to me!

[bluebelle] 16/2/2012 14:05

The only thing that worries me is my personal experience of acquiring family-owned Italian businesses !

[redips2] 16/2/2012 13:40

all good here.

[cockneyrebel] 16/2/2012 13:05

Results in a foretnight - somethhing else to add to the outlook imo.

CR

[cockneyrebel] 16/2/2012 13:01

Nice acquisition just announced for 80m Euros.

CR.

[redips2] 11/1/2012 12:57

"alive alive oh"

[wildey] 21/11/2011 19:07

Pat, although I am by no means an expert, my opinion is that there is nothing specifically wrong with the share and in normal market conditions would be trading at a much higher price, however the general market volatility holds the share back at the moment.

Big engineering companies such as IMI act very much as barometers for general consensus regarding the performance of the economy in the short to mid term. Hence if people think they see dark clouds on the horizon for the economy as a whole it will affect the share price of the company... there has been a fair amount of negative news about over the last few days (such as the potential for France to lose it's AAA credit rating, the continuing uncertainty around the reduction in US deficit, Spain/Italy/Greece).

[pat96] 21/11/2011 15:26

Does anyone have any idea why this share is falling so fast at the moment? It seems to be a good value share and the recent statement was decent. I know that things are generally a bit ropey at the moment but this seems a bit out of proportion. Excuse me for being a bit thick but I am a relative newcomer and there is obviously something I'm missing here.