Source: Sharecast
The blue chip said organic revenues rose 1% during the quarter, with especially strong growth in process automation. Order intake jumped 14% and revenues were 9% higher. Process automation is IMI's largest business sector, responsible for 37% of group sales.
The strong performance was partially offset by a 2% dip in organic revenues in industrial automation – attributed to mixed end markets – and a 5% fall in life technology.
IMI said the fall in life technology revenues was expected, with the unit affected by softness across the life sciences device market and tough comparables.
However, IMI said it was still on course to meet full-year guidance. It expects adjusted basic earnings per share of between 120p and 126p, representing around 10% growth in adjusted organic operating profit, despite additional foreign exchange headwinds.
Roy Twite, chief executive, said: “We continue to expect good organic growth in 2024, having delivered a resilient performance in the third quarter.”
As at 0915 GMT, shares in IMI were up 2% at 1,700p.
Jefferies analyst Andrew Douglas called it a “robust” trading update.
He continued: “Cost-saving benefits are coming through, in line with previous guidance, and management will continue to look for efficiency gains. Management reiterates its EPS guidance, despite forex headwinds, hence we expect little change to consensus post this update. ‘Buy’ reiterated.”