Rotork (ROR) - profit warning and share price plunge, the predators will be lurking…
The market leading actuator manufacturer and flow control company that has delivered handsomely for investors over the past 10 years saw its shares plunge to 3 year lows following a profit warning yesterday. If the share price of this high quality business gets too depressed no doubt predators will be lurking
The Group confirmed that the trading environment in the second half to date has been challenging across most of their key markets (read mostly oil and gas) and geographies with an increased number of project deferrals and cancellations. Even the great Rotork clearly underestimated the extent of the downturn. The Group’s “lean business model” means that they have quickly cut costs but the savings will not be sufficient to mitigate the profit impact of lower revenues in the year. Taking all of the above into account and based on current exchange rates, they now expect revenue for the year ending…