Invensys PLC is battling the brute force of an uncertain macroeconomic climate, a reality that is reflected in its mid-year fiscal numbers announced this week.
The automation giant reported a small increase in revenue compared to the same period last year, and a slight dip in order intake. However, had it not been for the company’s Operations Management business, which logged a 21% revenue increase in the first six months of the fiscal year, the company would be facing a much bigger fight.
For its 2011-2012 fiscal half-year results ended Sept. 30, 2011, Invensys reported £1.24 billion in revenue, an 8% increase over the £1.16 billion reported in the same period last year. Operating profit was £102 million, up 3% from the 2010-11 period. The strong performance of the Operations Management group was offset by Invensys’s Rail and Control groups, which were dealing with the effects of contract delays and weak markets, respectively, the company said.
Invensys Operations Management, buoyed by the oil and gas industries and the emerging markets of the Middle East, Asia, and South America, reported 2011-12 half-year revenue of £618 million, compared to £521 million in the same period last year. Orders were up 4%, the company said, and even European and North America markets sustained strong performance as manufacturers increased investments in aging automation platforms. In comparison, Invensys Rail did have a 7% increase in revenue to £382 million, but experienced an 11% decrease in orders. Invensys Controls, which makes components for appliances, heating and air conditioning products, experienced a 15% decrease in both revenue and orders.