IMI's annual profit tumbles
But the engineering group slashes net debt by 26 per cent.
On 2 March, the global engineering group IMI posted a profit for continuing operations after tax of £203.7m for the year ended 31 December 2011, down from £226.4m the previous year.
Revenues increased by 12 per cent to £2.13bn, as against £1.91bn in 2010. Net debt was reduced by 26 per cent to £108m (2010: £145m).
Operating profit was £314.2m (2010: £309.1m), after restructuring costs of £23.5m, acquired intangible amortisation of £32.3m and reversal of net economic hedge contract gains of £4.1m.
Diluted earnings per share in 2011 were 62.1p, compared to 69.4p in 2010.
Roberto Quarta, chairman, said: “IMI has delivered another strong set of results in 2011, with good growth and record underlying profits, margins and earnings. In light of this performance and our confidence in the future prospects for the business, we are pleased to propose an increase in the full year dividend of 15 per cent.”
During 2011, the company’s severe service business delivered revenue growth of 27 per cent, while fluid power, indoor climate, beverage dispense and merchandising business areas reported revenues of £767m, £310m, £317m, and £169m, respectively.
Quarta added: “While the global macroeconomic outlook remains uncertain, we are committed to our well-defined plans to drive strategic convergence, accelerate future growth, deliver further margin improvement and make greater use of our strong balance sheet in delivering value enhancing acquisitions. Based on current market conditions, we remain optimistic that the group will make further progress in 2012.”