Proactive Investors - Smiths Group (LON:SMIN) slumped to the bottom of the FTSE 100 movers as the engineering giant undershot both revenue and earnings expectations in the first six months of 2024.
Headline operating profit ticked up 5% to £526 million, the engineering firm said on Tuesday, while revenue climbed 3% to £3.1 billion, but the consensus estimate for profit was £535 million.
Smiths also unveiled a new cost-cutting plan aimed at saving £35 million annually going forward, which will also include a “footprint optimisation review.”
This would also include a “prioritisation” of research and development, said the statement plus more M&A.
On that note, the airport scanners maker said it is acquiring US-based Modular Metal Fabricators and Canada's Wattco for £110 million to grow its international heating business.
Heating was a problem in its latest half year with the slowing US construction market hitting demand for its heating, ventilation and air conditioning (HVAC) products.
Revenue growth for the year overall would be between 4% and 6% said Smiths, which added it expected margins also to improve.
Shares fell 7.9% to 1,676p.