IMI lifts profit targets after strong third quarter

Engineering group IMI has lifted its full-year earnings guidance and good growth and margin improvement in the third quarter ended 30 September.

The company now expected 2023 adjusted earnings per share to be between 114p and 118p, up from previous guidance in July of 112p to 117p.

IMI, which provides specialist motion and fluid control technologies, said organic revenues were up 3% year-on-year, rising 5% on an adjusted basis, "with margins also improving" (though it didn't disclose by how much).

Meanwhile, the ongoing restructuring programme remains on track to deliver £20m of benefits for the full year, and £13m and £9m over 2024 and 2025, respectively.

In the Automation segment: process automation saw strong order growth of 15% and organic revenues up 8%, helped by continued strength in the liquefied natural gas, marine and downstream oil and gas markets; while industrial automation organic revenues rose by just 1%.

In Life Technology: transport organic revenues jumped 20% after strong growth in India and China; but climate control organic revenues were flat; and life science and fluid control organic revenues down 13%.

"We have made great progress delivering our purpose-led strategy, 'Breakthrough Engineering for a better world', as we continue to help our customers become safer, more sustainable and more productive. Our portfolio is aligned to attractive growth markets, and we are creating value for all our stakeholders through a focus on customer satisfaction, market-led innovation and complexity reduction," said chief executive Roy Twite.