Spirax reiterates full year expectations but sales remain under pressure

Engineering group Spirax-Sarco reiterated expectations for the full year, despite saying were under pressure because of a continued slowdown in industrial production.

The FTSE 250 group said the sluggish output conditions it registered in the first half of the year continued in the second six months, adding it had registered a further slowdown in production in Latin America and Asia.

The company added that in the first 10 months of 2015, sales on a constant currency basis registered a slight slowdown, but it was seeing signs of stabilisation in Europe, Middle East and Africa.

For the full calendar year, Spirax expects sales and operating profit to be down 4% and 5% respectively when compared to last year, although it added its diversification across a number of sectors was providing helpful amid challenging market conditions.

Spirax shares were up 4.02% to 3,025.00p at 0927 GMT on Tuesday.