13 March 2002

Interim Results for the 6 months ended 31 January 2002

Highlights:

  • Operating profit of 201m from continuing activities, 11% down
  • Strong cash-flow maintained, profit-to-cash conversion at 80%
  • Growing defence activity is limiting the impact of civil aerospace downturn
  • Rapid restructuring has reduced the cost base in all divisions
  • Sale of marine seals will bring debt to circa 900m
  • Smiths selected by Boeing for 767 tanker refuelling system
  • Dividend maintained at 8.75p
  • More confidence in outlook for second half

Commenting on the results, Keith Butler-Wheelhouse, Chief Executive said:

This was an exceptionally tough six months for many companies. Against challenging circumstances, our 13% first-half margins and 80% profit-to-cash conversion show the resilience of Smiths Group. Meanwhile, we have been focusing on disposals and restructuring so that we can return to growth as the economic cycle starts to recover. Our defence business is already growing strongly and recent acquisitions will help Medical make a bigger contribution. We are now more confident about the outlook for the second half of the year.

Smiths Group: Interim Results 2002

Reported on a fully consolidated basis, including discontinued activities and after exceptionals and amortisation, Smiths Group recorded pre-tax profit of 123 million (2001: 97m) and earnings per share of 14.0p (7.7p) in the first half of the current year, with the prior period bearing one-off merger-related costs. The remainder of this statement focuses on the continuing activities.

m 2002 2001
Turnover 1,491 1,530
Operating profit* 201 226
Interest (27) (26)
Pre-tax profit* 174 200
Earning per share* 22.4p 25.4p
Restructuring charges 8 68
Interim dividend 8.75p 8.75p

*before exceptionals and amortisation

ENDS