Smiths Group plc, H1 2013 Earnings Call, Mar 20, 2013

Smiths Group plc announced unaudited consolidated earnings results for the six months ended January 31, 2013. For the period, the company reported revenues of £1,475.2 million compared with £1,407.4 million for the same period a year ago. Operating profit was £215.0 million compared with £131.6 million for the same period a year ago. Profit before taxation was £187.8 million compared with £111.2 million for the same period a year ago. Profit after taxation, continuing operations was £141.3 million compared with £84.8 million for the same period a year ago. Profit for the period attributable to Smiths Group shareholders was £140.6 million or 35.4 pence per diluted share compared with £83.8 million or 21.2 pence per diluted share for the same period a year ago. Net cash inflow from operating activities was £119.9 million compared with £133.2 million for the same period a year ago. Purchases of property, plant and equipment was £23.1 million compared with £21.1 million for the same period a year ago. Expenditure on other intangible assets was £3.0 million compared with £5.5 million for the same period a year ago. Expenditure on capitalised development was £13.0 million compared with £13.1 million for the same period a year ago. Net debt at 31 January was £855 million, up from £791 million at 31 July 2012. The board has declared an interim dividend of 12.50 pence per share, an increase of 6% reflecting the strong cash conversion in the period. The interim dividend will be paid on April 26, 2013 to shareholders registered at the on April 2, 2013. The ex-dividend date is March 27, 2013. The company's priority is driving operational improvements and efficiencies across its businesses while increasing its investment in high growth markets and new product development to accelerate medium-term revenue growth. Looking to the second half, the company sees tough trading conditions as a result of the US medical device tax, slower demand in some parts of John Crane, and the risk of further government budget cuts. However, despite these challenges, there remain significant opportunities to generate value for shareholders over the medium term. the company will continue to focus on investing to drive sales growth, and delivering further operational improvements, while maintaining strong cash conversion and improved returns. The company expects headline tax rate of 27.5% to be sustained for the fiscal 2013. The company expects net debt to be around £750 million at the year end.

Smiths Group plc announced that they will report first half, 2013 results on Mar 20, 2013