IMI announces new chairman and strong start to 2011
BIRMINGHAM based engineering group IMI has made a strong start to the year with group revenues in the four months to the end of April up 10% on a reported basis and 6% on an organic basis.
The company also announced that Roberto Quarta would take over chairman of the firm with effect from November. He succeeds Norman Askew who will retire next month.
Mr Quarta is currently chairman of Clayton, Dubilier & Rice, Europe and of Rexel SA and a non-executive director of BAE Systems.
Martin Lamb, chief executive, said: “We are very pleased that Roberto has agreed to become our new chairman, (he) has a wealth of experience in the engineering sector and a strong track record of leading large international companies. I am looking forward to working with him as the group moves into its next stage of development.”
In outlook, the group said its plans to accelerate longer term growth through increased investment in sales and engineering, particularly in emerging economies, were making good progress.
“Our various initiatives to combat input cost inflation and build on the margin momentum of previous years are continuing to bear fruit. Overall we expect results in the first half of the year to be well ahead of the same period last year and we remain confident that the group will continue to make good progress in 2011,” said the firm in an interim management statement.
In its Severe Service operation, the group said shipments during the first four months of the year were down around 10% on an organic basis due primarily to weak Fossil Power order intake in 2010.
However, it said revenues were expected to be much stronger in May and June reflecting increasing shipments to the Oil and Gas sector. Ultimately, H1 revenues are expected to be broadly in line with the same period last year.
The group said German firm Zimmermann & Jansen, which it acquired last year, was performing well and was in line with expectations.
Fluid Power performed better, with revenues in the four months to April up 18% compared to the same period last year. This was driven by healthy demand in the Commercial Vehicle, Energy and Rail sectors.
IMI said it was also making good progress in its plans to switch production to low cost manufacturing centres in China, Mexico and the Czech Republic.
Its Indoor Climate also saw strengthening business, with revenues for the first four months up 5% on last year. This was helped by global moves towards more energy efficient buildings.
Volumes also improved in its Beverage Dispense division, with revenues to the end of April up around 4% on last year.
The group said it continued to be cash generative and its balance sheet remained strong. Net debt at the H1 stage is expected to be around the same level as last year.
