Invensys plc : Q3 2012/13 Interim Management Statement

Q3 2012/13 Interim Management Statement 24 January 2013

Invensys plc, the technology group, is today publishing the following Interim Management Statement covering the period since 30 September 2012:

INTERIM MANAGEMENT STATEMENT

Q3 2012/13 performance and outlook

Overall the Group's performance in the first half has continued into the third quarter and, subject to any significant changes to the global macro-economic environment, we continue to believe that we will improve our performance for the year as a whole. Invensys Operations Management

Order intake in the quarter was in line with the corresponding period last year, despite some further delays to the timing of large greenfield project awards and continued softness in equipment orders in Europe and North America. Revenue growth in the quarter was supported by the conversion of its order book although operating profit was held back due to sales mix, which is expected to improve in the final quarter. Work on the China Nuclear Projects continues as planned.

Invensys Controls Invensys Controls continued to face generally weak market conditions across each of its segments and some delays in new product launches; revenue declined slightly but operating profit for the quarter was ahead of the corresponding period last year.

Invensys Rail

During the quarter, revenue improved due to the mobilisation of several of the large contracts won last year and operating profit for the quarter was also ahead of the corresponding period last year.

Financial position

At 31 December 2012, the Group had net cash of £81 million. The reduction in the quarter of £94 million arose due to the £38 million payment for the acquisition of Spiral Software and payments totalling £48 million for dividends, taxation and legacy items including pensions; operating cash flow was breakeven with further investment in some of our long-term projects ahead of payment milestones. We expect our cash position to improve significantly in the final quarter due to the achievement of several large project milestones.

Update on disposal of Invensys Rail

Following approval by shareholders at the General Meeting held on 19 December 2012 and the receipt of the required approvals from the lending banks and the UK Pension Regulator, the Rail Disposal remains conditional upon all waiting periods and approvals required pursuant to applicable anti-trust laws in the EU, US, Turkey and Brazil having expired or been obtained. We continue to expect that completion of the disposal will take place in calendar Q2 this year.

Contact:

Invensys plc
Steve Devany tel: [phone]
Annabel Michie tel: [phone]

FTI Consulting

Andrew Lorenz
Richard Mountain tel: [phone]

Safe harbor
This announcement contains certain statements that are forward-looking. These statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition and liquidity, and the development of the industries in which the Group operates, may differ materially from those made in or suggested by these statements and a number of factors could cause the results and developments to differ materially from those expressed or implied by these forward-looking statements.