Traders have been looking for the next industrial group to warn on earnings after downbeat statements from the likes of Cookson and Morgan Crucible.
Spectris, the testing and controls equipment group, was expected to join the club, given the global economic downturn. Instead it has issued an upbeat statement and its shares have rebounded sharply.
Its sales increased by 12% during the last quarter, including a contribution from recent acquisitions which was offset by a negative currency effect. At constant currency rates sales were up 2%, albeit this was a slowdown on the first half. It said:
Spectris remains well positioned to deliver on its expectations for the year as it realises both the benefits of its recent acquisitions, especially Omega, and the increase in the proportion of resilient revenues generated in the business.
That was enough to soothe the nerves, and the company's shares have jumped by nearly 11%, adding 170p to £17.64 and leading the FTSE 250 risers. (As it happens the shares had fallen 11% or so since the Cookson warning). Andy Douglas at Jefferies said:
This is a resilient performance and better than many will have feared, with slower growth versus the first half of 2012, reflecting the macro-economic environment - this has been anticipated by the market. The outlook statement is 'in-line' for the full year, and whilst the top-end of consensus may be trimmed, we firmly reiterate our Buy recommendation.
