Flat Invensys disappoints investors

13 April 2012

HOPES of an upbeat trading statement from Invensys, which have driven the shares up by 15% in the past 10 days, were dashed with a middle-of-the-road announcement.

Operating profits from the largest division - production management - were at the lower end of expectations in the first half despite slightly higher sales.

Invensys blamed investment in growth, slow improvement in productivity and one-off costs of £5m resolving past problems. Rail systems sales rose and operating profits were at the higher end of forecasts while the development division was in line with expectations.

But investors were given no news on the £1.8bn sell-off of assets with the £500m sale of the metering division reportedly on its way shortly. Invensys merely said its sale process 'is proceeding to timetable'.

Chief executive Rick Haythornthwaite said: 'There remains much to be done to achieve our goal of building a strong Invensys, both operationally and in terms of our balance sheet.'

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