IMI Warns of Slower Growth


LONDON -- IMI (ISE: IMI.L) -- the global engineering group -- is currently down just over 1% after warning of slower growth in the second half of 2012. In its interim report for the first six months of 2012, it posted group revenues up 6% at 1,090 million pounds, pre-tax profits up 7% at 154.4 million pounds, and basic earnings per share up 8% to 34.5 pence. But IMI's chairman, Roberto Quarta, warned of slower growth in the six months to come:

The Group has delivered a good set of results in the first half of the year with organic revenue growth of 5%, underlying earnings growth of 7% and a dividend increase of 7%. While the pace of revenue growth is likely to slow in the second half, given in particular the weakening economic conditions in Europe, we still expect to make further progress in the remainder of the year.

Notwithstanding the macroeconomic uncertainty, we continue to make good progress with the strategic development of the Group, with increased investment in new products and emerging markets, and ongoing utilisation of a strong balance sheet in securing further value-enhancing acquisitions.

IMI's share price continues its recent roller-coaster progress, up nearly 9% over the first half, but down more than 14% on its 2012 high. However, IMI's share price has quadrupled since its post-credit-crunch low in 2008, amply rewarding longer-term shareholders.

If you're also keen to earn great returns, this free Motley Fool report -- "10 Steps to Making a Million in the Market" -- could help you on your way. The report highlights how choppy markets can still provide the big winners to take you to that magic million.

You can download "10 Steps to Making a Million in the Market" for free right now. But hurry, the report is available for a limited time only.

Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors of 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.

Further Motley Fool investment opportunities:

The article IMI Warns of Slower Growth originally appeared on

Jon Wallis doesn't own shares in IMI.The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.