Invensys revival has stalled

By THIS IS MONEY
Updated:

 

THE global market for the diverse products of electrical engineering specialist Invensys remains stagnant, leaving trading at around the same level as in the previous six months, chairman Lord Marshall revealed at its annual meeting today.

The group thought in May that there were signs of a revival in orders, particularly in the automation and controls sector of the US economy.

However, the US commercial construction and IT market has been weak. The commercial construction sector is hit by overcapacity and IT services through the world have been poor as the tech and telecom fallout continues.

One ray of hope comes from some of its consumer-driven businesses. On the industrial side, its Rail Systems and Power Components operations are 'seeing signs of greater activity'.

The group is continuing to invest in new capabilities and processes, and Marshall is confident that 'benefits will begin to emerge in the second half'.

The debt-laden group plans to recruit a senior vice president finance to work alongside finance director Kathleen O'Donovan, who said last year that she wanted to stand down once post-merger work had been completed. She has now agreed to stay on during the run-in of the new appointee.

Invensys shares fell 3 3/4p to 63 1/2p having hit a low of 33 1/4p last autumn.

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