Down 2%
Down 10%
£710m
Operating profit
£126.4m
Revenue
Operational Review
IMI Precision Engineering
Engineering
GREAT
Solutions
IMI Precision Engineering is a world leader in motion and fluid
control technologies wherever precision, speed and reliability
are essential. We deliver integrated solutions which improve
the productivity and efficiency of customers’ equipment.
We operate sales and service networks in 75 countries and
have manufacturing facilities in the US, Germany, China, UK,
Switzerland, Czech Republic, Mexico and Brazil. Product support
is provided through global centres of technical excellence, and
facilities for computational fluid dynamics (CFD) design and
research & development testing. We also employ a dedicated team
of field engineers, sector specialists and key account managers –
all committed to providing excellent service to customers.
Performance
After adjusting for the impact of adverse exchange rate movements of £40m and
for acquisitions and disposals, revenues increased 4% on an organic basis. Revenues
of £710m (2013: £723m) were down 2% on a reported basis. Industrial automation
revenues were up 5% on an organic basis, driven by increased activity levels in North
America (up 4%) and the Asia Pacific region (up 22%) but partially offset by weaker
second half European markets, most notably in Germany. Commercial vehicles sales
increased 4% in the year with 17% growth in Europe and a strong North American
market which was impacted to some degree by the conclusion of a large contract
during 2013 and lower truck production in Brazil. On an organic basis, Food &
Beverage was up 5%, Rail was up 28%, while Oil & Gas reduced 6% and Life
Sciences was down 1%.
Segmental operating profit at £126m (2013: £141m) was 10% lower on a reported
basis and, after adjusting for the impact of adverse exchange rate movements of
£8m, 3% lower on an organic basis. Operating margins improved in the second half
(H1 2014: 17.7% v H2 2014: 17.9%) while in the full year operating margins at 17.8%
were lower reflecting an adverse sales mix and the increased investment to support
long-term growth.
Industrial Automation
Delivering benefits to global customers
– including auto in-plant, machine tools
and general industry – IMI Precision
Engineering’s high performance
products include valves, valve islands,
proportional and pressure monitoring
controls and air preparation products,
as well as a comprehensive selection
of pneumatic actuators – rodless,
compact, roundline and rotary. These
are quickly and easily selected and
ordered via our Norgren Express
activities globally and supported with
high quality technical advice.
Commercial Vehicle
An extensive range of cab, chassis
and powertrain solutions deliver
fuel efficiency, emissions reduction
and faster assembly times for the
world’s leading commercial vehicle
manufacturers. Acknowledged for their
safe and reliable operation, Precision
Engineering’s products have been
proven in the harshest environments
and over millions of miles of reliable
service. We understand the market
trends, environmental challenges,
emissions standards and specifications
that matter to truck manufacturers and
Tier 1 suppliers.
Oil & Gas
IMI Precision Engineering’s extensive
range of products and expertise is
acknowledged widely throughout
the Oil & Gas industry. In addition to
IMI’s customised solutions, Precision
Engineering produce a comprehensive
range of certified, world-class products
which deliver precision control in even
the harshest environments, including
stainless steel valves and regulators,
nuclear class valves and emergency
shutdown controls.
Life Sciences
IMI Precision Engineering has a
proven track-record of supporting the
development of advances in medical
devices, diagnostic equipment and
biotech and analytical instruments.
In particular, the division’s products
and expertise have helped reduce the
size of equipment, while enhancing
accuracy, throughput and fluid control
performance. The division is recognised
for products which manage the precise
control, repeatability and safety needs
of the industry. Our solutions are found
in equipment for anaesthetics and
patient therapy through to molecular
diagnostics and pathogen detection.
38
IMI plc
