British manufacturing firm Spirax falls as order delays impact profit margin
May 14 (Reuters) - Shares of Spirax Group (SPX.L), opens new tab fell more than 5% on Wednesday after the British manufacturing firm reported a slightly lower four-month profit margin as some customers moved their order shipments to later this year.
The company also saw lower demand for large projects in its steam thermal solutions division, particularly in China and South Korea, where trading conditions remain challenging.
Spirax provides thermal energy and fluid technology solutions in a range of industrial sectors, from healthcare and pharmaceuticals to transport and power generation.
China and South Korea, which make up about 15% of its group sales, have been weighing on the business as clients cut back on expansion and due to an unstable political environment in Korea.
Shares of the Cheltenham, UK-based company were down 4.6% at 6,280 by 0801 GMT.
Spirax maintained its 2025 guidance for organic revenue growth and profit margin but now expects forex to be a 3% headwind to sales and 6% to profit, up from previous estimates of 2% and 4%, respectively.
While the company said its local manufacturing facilities cushion it from any direct exposure to U.S. tariffs, it expects to mitigate any potential financial impact through surcharges, pricing and limited reorganisation of manufacturing activity.
It reported organic revenue growth in low single-digit percentages for the first four months of the year, with an adjusted operating profit margin slightly lower than the same period in 2024.
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