Engineering group Invensys reported a lower third-quarter pretax profit yesterday but said strong markets would enable to maintain profitability in the final three months.
The former BTR reported pre-tax profit of £33 million compared with £38 million a year ago. Operating profit rose to £67 million from £53 million compared with a consensus fore-cast of £60 million cited by brokers Morgan Stanley and Deutsche Bank.
Revenues rose to £545 million from £521 million a year earlier.
Invensys said following recent disposals about 70 per cent of its revenue comes from Process Systems and Rail Group, which has a West Midlands operation based on Birmingham, and that the outlook for Process Systems' global markets remains strong.
Separately, the company said it is exercising its optional redemption right to call in all the outstanding high yield bonds on March 17, saying it will significantly reduce its future finance charges.
Invensys shares gained ground following yesterday's positive third quarter results statement with Merrill Lynch restating its "buy" rating on the stock with a target price of 285p target.
The broker highlighted better than expected Q3 margins and the group's £1.8 billion order backlog.