Steam engineering specialist Spirax Sarco said that global industrial production has recovered from the pandemic, but supply chain problems have dented its forecasts.
Full-year forecasts for 2021 have been revised down to 7.4 per cent, compared to the 8.6 per cent forecasted, while full-year 2022 forecasts have also been reduced to 4.3% from 5.0%.
However, the manufacturing company said it continues to experience “very strong demand” across the group, with order books in all three businesses expanding in the four months to the end of October above its expectations at the time of the Half Year Results.
Growth in orders was highest in its Watson-Marlow business, driven by continued COVID-19 vaccine related demand from its customers in the pharmaceutical and biotechnology sector. In Steam Specialties, demand growth was well ahead of IP growth and orders received year-to-date are above the comparative period in 2019. Demand for Electric Thermal Solutions has grown at an even faster rate than Steam Specialties, after adjusting for the US Navy order secured in 2020, the largest single order in the Group’s history.
Currency effects also had an adverse impact on sales and operating profit, compared to the same period of 2020, as sterling strengthened against other currencies. If current exchange rates were to prevail for the remainder of the year, the company anticipates close to four per cent adverse impact on full year sales and profit, compared with 2020.