Rotork Share Discussion Threads

[wjccghcc] 13/7/2015 15:25

Exposure to oil and gas capex.

[grumps] 13/7/2015 13:10

Does anyone know why the share price of Rotork is falling when other similar stocks are doing well?

What is the current p/e and % yield ?

[broadwood] 03/6/2015 13:05

FLASH: Numis lifts Rotork to add from hold, target 290p - S

[broadwood] 24/4/2015 16:11

Flow control group Rotork said its order intake declined in the first three months of 2015 as challenging conditions in the oil and gas markets persisted.
The London-listed group said order intake in the first quarter declined 7.3% year-on-year, on the back of lower investment in upstream oil and gas markets and geopolitical tension in Russia and Eastern Europe.

The FTSE 250 group added that its Asia Pacific unit had experienced a slower-than-anticipated start to the year, while total revenue declined 6.7% in the quarter.

The group's control division saw order intake decline 5.8%, while the fluid system arm reported a 30% drop in order intake from the previous year due to project delays and uncertainty in the oil and gas market.

However, the gears sector bucked the trend and registered a 2% increase year-on-year in order intakes, thanks to good performance in Asia and America, while the Instruments business saw order intake more than double on the back of acquisitions it made

[broadwood] 24/4/2015 09:18

Yep, blame oil.

[apad] 24/4/2015 08:31

Could see £22 again with any luck.
apad

[redartbmud] 24/4/2015 08:03

Oops. A blip in results, down to oil.

[redartbmud] 03/3/2015 14:04

Superlative, stonking, spectacular, says it all.

[broadwood] 03/3/2015 13:12

Rotork comfortably beat expectations with its results for 2014 as the valve maker's ever broadening end-market exposure and stronger margins flowed through to record orders, revenues and profits.
The FTSE 250 group, which makes valves to control the flow of liquids, gases and powders for numerous industrial and commercial applications, said it was yet to see any noticeable impact in customer order activity in the upstream oil industry as a result of the slump in oil prices but cautioned that the increased uncertainty will present it with a more challenging market backdrop in the sector.

But chief executive Peter France stressed that Rotork's wide range of other global markets remained active and continued to be driven by strong long-term trends.

He said this broad end-market exposure, which management were continuing to expand via a widening product portfolio and international sales channels, had led to the record results for 2014.

Growth of 4% in order intake drove a 2.8% increase in revenue to £594.7m, which was boosted by another record fourth quarter of shipments and would have been even higher but for currency headwinds.

Analysts were impressed with the 20 basis point increase in operating profit margin, as a result of sourcing from lower cost regions, which flowed through to a 2.3% uplift in profit before tax to £141.2m, or 8.1% at constant currencies, with earnings per share up 5.4%, or 7% at constant currencies.

The full year dividend was hoisted 4.3% to 50.10p.

France pointed to long-term global that include population growth, urbanisation and automation which were driving heightened demand for flow control products and services to deliver cleaner energy, greater fuel efficiency and improved resource utilisation.

"Another positive trend is the increased focus by our customers on cost reduction and stricter environmental regulations. As a result, we are seeing good demand for energy-efficient products across all our end markets."

Broker Investec was impressed, noting that adjusted diluted earnings per share of 131.0p exceeded the highest estimate in the market as Rotork surprised those expecting a fall in margins.

"Having raised the base for 2015, upstream oil & gas - 15% of revenue in 2014 - is the focus of attention and Rotork has undertaken to react quickly to any deterioration, while it is still expecting to make progress this year. We expect some trimming to estimates today, but the scale is unlikely to scare investors."

To counterbalance the oil and gas weakness in 2015, the broker noted that the power business is growing strongly and there is a better outlook for water, while currency should no longer be a drag

[apad] 03/3/2015 08:28

Whilst our end markets in the upstream oil and gas sector may become more challenging in the near term, our other global markets remain active. Our geographic reach, end market exposure and diverse product portfolio provide the Board with confidence of achieving further progress in the coming year."

This really is a class act - no afterburners, just a steady climb.

apad

[broadwood] 14/11/2014 16:12

ndustrial engineering stocks were out of favour on Friday after Rotork and Castings disappointed with results and the market gave a muted reaction to a trading update from sector peer IMI.
Rotork, the actuator manufacturing and flow-control company, saw shares drop 3.8% at 2,404p in afternoon trade after revenues fell 1% in the third quarter due to the timing of deliveries.

Group order intake increased by 4.3%, but was down 18.2% in the fluid systems division due to strong comparatives and the loss of orders caused by the tightening of trade sanctions in Russia.

The company said it "continues to expect to make further progress in the full year", but margins are estimated to be flat on 2013.

Analyst Michael Blogg from Investec said the update was "disappointing" with Rotork's end-markets "variable". Blogg, who put his 'add' rating under review, said that consensus forecasts are likely to be "trimmed a little".

Meanwhile, while Numis Securities maintained its positive 'add' stance on the stock, the broker noted that oil prices - currently trading at a four-year low - "could be a negative looking forward". Oil and gas accounts for around 59% of Rotork's group revenues.

[redartbmud] 14/11/2014 15:49

Linhur

You are correct of course. I must be more realistic with my aspirations - I will stick with my bus pass instead of using the car for now.

red

[linhur] 14/11/2014 12:35

Red

You speak too quickly. Just going with market trend after IMS today.

Linhur

[redartbmud] 27/8/2014 13:36

Luvly Jubly Rodneeeeee!
This time next year we'll all be miwwwionnnaires.

[broadwood] 05/8/2014 10:49

Improving customer activity levels in the first half of the year led to record order levels at Rotork, the oil and gas industry component maker, helping to make up for stronger currency headwinds than expected.

At constant currencies, revenues rose 4.4% to £278.5m and adjusted profit before tax 5.4% to £68.4m, but profits were 1.4% lower if a 9% adverse currency impact was taken into account.

Order intake was up 7.1% to £302.7m, or up 2.9% without adjusting for forex.

As in previous years, the group's performance will be more weighted towards the second half, with the profit numbers implying a 57% weighting to the second half in order to hit full year forecasts. This is higher than the company's three-year average weighting of 53%, noted broker Liberum.

But Chief Executive Peter France was understandably bullish about hitting targets after the encouraging movement in the market.

"During the first half, we saw an increased level of activity in many of the markets that we serve and our geographic reach and broad product portfolio enabled us to secure a number of major projects," he said. "This resulted in record order intake and first half revenue despite a strengthening currency headwind."

He added that due to the order book of £203m, up 7.4% from December, increased project activity and wide market exposure gave the management "confidence of achieving further progress in the full year".

Adjusted basic earnings per share of 57.3p were down 0.5% or up 6.3% at constant currencies, with the interim dividend up 6.4% at 19.2p.

Analysts encouraged by strong order intake

Broker Investec was encouraged by the "stand-out feature of the interim results" - the strength of the order intake.

"Some of this will be due for delivery in later years, but the increased visibility is encouraging. Rotork's business review points to mixed market conditions, but there is clearly still plenty of activity and the company is taking a significant share of what is available. In our view, this again undermines the bears' view that reduced capex in the oil and gas industry will harm Rotork's growth prospects."

Shares in Rotork were up 1.7% to 2,801p at 10:00, retreating slightly from six-month highs earlier in the day.

[meijiman] 05/8/2014 08:58

super looking figures and decent outlook statement. quality earnings story. most things looking good -usual currency headwinds the main negative.

[redartbmud] 02/6/2014 08:23

RNS

Rotork plc ('Rotork') is pleased to announce that Martin Lamb is appointed a non-executive director of Rotork from 2nd June 2014. He will be a member of the Audit, Nomination and Remuneration Committees of the Board.


Martin was Chief Executive of IMI plc from 2001 until 2013. He is a non-executive director of Severn Trent plc.

Ian King is a big loss, but Martin Lamb is a very good replacement, having met both of them. IMHO.

red

[broadwood] 25/4/2014 09:09

Manufacturing group Rotork said that full-year forecasts remain unchanged despite currency headwinds and lower orders in the first quarter.

The company, which makes electric, pneumatic and hydraulic valve actuators and gearboxes, said that revenues reached a record level in the first quarter and were 2.4% higher than the prior period.

However, the timing of orders and foreign exchange movements mean that the company is likely to experience a greater second-half weighting.

"Currency will continue to be a headwind although we anticipate that the impact will slightly reduce as the year progresses and comparisons become easier," Rotork said.

Order intake was down 7.3% at £140m during the quarter, which Rotork attributed to a very strong comparative period the year before. Nevertheless, the order book stood at £191m by the end of the period, up 1.7% since the start of the financial year.

Three out of the company's four main divisions experienced declines in order intake during the first quarter.

[broadwood] 25/4/2014 07:05

Strong enough results albeit currency problems which just have to be lived with.

The global markets that we serve remain active, providing further opportunities for growth. Currency will continue to be a headwind although we anticipate that the impact will slightly reduce as the year progresses and comparisons become easier. The Board remains confident of achieving further progress in the year.

[broadwood] 11/3/2014 13:38

Thanks apad.

[apad] 11/3/2014 13:05

Thin gruel from the IC.
The most gratifying aspect of Rotork (ROR) beating consensus expectations for full-year earnings, says chief executive Peter France, is that it was achieved across all the group's business segments. Shareholders will probably be just as enamoured by yet another double-digit increase in the valve-tap manufacturer's dividend. Rotork's record order intake translated into adjusted operating profit of £151m (from £132m in 2012) on a margin up 40 basis points to 26.2 per cent.
Worries that Rotork's performance could suffer from its exposure to the oil and gas sector have proven unfounded, with sales from the division up by a quarter. Demand for the group's actuators (valve-control devices) has surged as oil and gas drillers have come under increasing pressure to improve operational safety.
apad

[apad] 05/3/2014 10:12

Extract from FT article:
Rotork is eyeing further acquisitions after the British engineering company announced plans to buy a South Korean manufacturer to boost overseas growth.
The company said the purchase of Young Tech Company for £64m would help to open opportunities in Asia for its existing instruments division.
Shares in Rotork jumped 6.43 per cent to £28.12 on Tuesday after the company reported a 8.8 per cent rise in pre-tax profits to £138m at a constant currency rate, boosted by a series of acquisitions last year.
Peter France, chief executive of Rotork, said it has a "long list" of targets for each of its divisions. He added it was keen to strengthen Rotork's market share in eastern Europe and Latin America.
While order intake was up 7.3 per cent year-on-year, most of this was driven by recent acquisitions, leading some analysts to emphasise concerns about slowing organic growth at the company.
"If organic growth is slowing, which it appears to be despite an improvement in the fourth quarter, in our view the key consideration becomes whether Rotork can continue to find more cash-funded acquisitions to add to its portfolio,"
apad

[broadwood] 04/3/2014 15:57

Buys Seoul based Young Tech
- Full-year earnings fuelled by product and geographic expansion
- Lifts full-year dividend, confident for year ahead

British manufacturing company Rotork reported record full-year revenue and profit as it acquired Seoul, South Korea-based valve and accessories manufacturer Young Tech.

The acquisition, for £64m in cash, is subject to regulatory approval.

In a separate statement, the FTSE-250 engineering group said pre-tax profit increased 11.1% to £138.0m for the year ended December 31st 2013, while revenue for the year rose 13.0% to £578.4m.

Chief Executive Peter France said: "Our strategy of expanding our product portfolio, geographic reach and end market exposure has enabled us to deliver another year of record order intake, revenue and profit.

"We continue to invest for growth, increasing our international sales network and expanding our product portfolio both organically and by acquisition to strengthen our presence in the wider flow control market."

The group's order book rose 3.8% to £187.8m from December 2012.

Rotork added that while weakness within some regions due to economic conditions and currency headwinds will likely persist, it believes that the global markets that it serves remain active, providing further opportunities for growth.

"The board remains confident of achieving further progress in the coming year."

A full year dividend of 48.05p has been recommended, up 11.7% from the previous year.

[redartbmud] 04/3/2014 15:44

APAD

Could well be there.

red