SPXSY Spirax Group PLC (PK)

By Renae Dyer

U.K.-based engineering company Spirax-Sarco said Wednesday that it expects a 4% hit to full-year sales and profits if exchange rates remain at current levels for the rest of the year.

The FTSE 100 listed group, which operates in more than 60 countries, said a stronger sterling had an adverse impact on its sales and operating profit in the four months to October 31.

Spirax-Sarco earns more than 90% of its revenue outside the U.K., a spokesman for the company said. More than half of this is earned in dollars and the euro, which have both weakened against sterling compared to 2020, he said.

GBP/USD ended October at 1.3694, more than 5% higher compared to a year ago, according to FactSet. EUR/GBP fell more than 6% to 0.8438 over the same period.

Despite the currency hit, the group continues to expect record revenue, profit and operating margin for 2021 after seeing strong demand in the four months to the end of October. However, it cut its forecasts for global industrial production as supply chain disruptions led to material shortages and rising costs.

Write to Renae Dyer at (renae.dyer@wsj.com)

(END) Dow Jones Newswires

November 17, 2021 10:40 ET (15:40 GMT)

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