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Rotork’s Profit Warning


It has not been a good week for Rotork, the company which produces valves have watched its shares drop a staggering twelve per cent. This drop in shares came after a profit warning announcement by the company.

Unfortunately for the company, Rotork has experienced a number of delayed and cancelled projects which is expected to impact their profits.

As many people will be aware, Rotork produces valves for the oil and gas and nuclear and power industries. Like many other businesses, Rotork rely on these industries in order to continue producing valves. If one of these industries experiences trouble, it unfortunately has a bit of a domino effect and Rotork is also negatively impacted.

Rotork’s profit warning has been put down to a mixture of the low price of oil and the launch of shale technology. Both the oil and gas industry have been hit hard recently and now Rotork are starting to feel it too.

In a statement, Rotork has explained that the second half of the year has been a huge challenge. The company said that August was a particularly bad month for the business and this has been put down to delays in a number of projects and a number of cancellations. Rotork were expecting more orders in the third quarter which have now been put back until 2016, affecting their profits.

Rotork now expects their revenue to be between five hundred and thirty million pounds and five hundred and fifty five million pounds. They are also expecting an operating profit of between one hundred and twenty million pounds and one hundred and thirty million pounds.

The twelve per cent fall means that Rotork experienced the second biggest fall on the FTSE 250 index. Unfortunately, experts predict that there is more doom and gloom to come. The biggest fall came from Smiths Group. The company who has not yet released their full year results are this year’s biggest FTSE 100 faller. Smiths Group work with all of the major oil and gas companies, including Chevron Corp and BP

Many experts have stated that those businesses working in the oil and gas industry have a gloomy outlook because of the low oil price. There are a number of challenges facing the oil and gas industry therefore, companies like Rotork can expect further delays and cancellations.

This is because many businesses in the oil and gas industry are going to be cost cutting in order to survive.

Analysts have explained that even the biggest companies are not safe.

But, as mentioned earlier it isn’t just the oil and gas industry that is having a negative impact on the business. Other markets such as water and power are also struggling and affecting the company’s profits.

Similar companies to Rotork that have also experienced their shares drop. Companies include Weir Group and Babcock International. Weir Group is known for producing pumps and Babcock International is known for supplying engineering and support services.

How to choose the right HDPE pipe suppliers?

HDPE_pipe suppliers

HDPE or plastic pipe suppliers are in high demand in today’s market. The main reason because this is that the pipe has a non-corrosive nature. Metal pipes have a tendency to get rusted and the metals will often break down. High Density Polyethylene pipes have a better durability than metal pipes. Water resistance gives them an edge over metal pipes and this is why pipe suppliers and consumers prefer them.

Another big reason why pipe suppliers prefer this material is because of the malleability and lightweights they can offer. Consumers prefer this pipes because outside materials rarely seep into them. The main reason this is true is because HDPEs can only be joined together through fusion. This makes them tough and hard like the rest of the pipeline that is given by pipe suppliers. Leakage of the material carried through the pipe is decreased by a large percentage. Additionally, when harmful material seeps in from the outside it is eradicated.

Can pipe suppliers help me in repairing HDPE high density polyethylene pipes?
Yes, of course! The suppliers are very knowledgable when it comes to technology in repairing the pipes. The technology that is used is known as plastic extrusion. This is considered to be the latest and greatest technology used by suppliers in repairing HDPE pipes. How is plastic extrusion different from other available technologies? It is a process that that plastic is passed and filtered into a die when it is in a molten state. This is how the shape of the pipe is formed. When the pipeline repair is occurring the supplier needs to place a cooler fan in order to regulate the temperature on the inside of the pipeline. Coolers and other equipment are needed to maintain the desirable temperature inside the liner pipes.

Is the fusion process important during repair of the pipeline?

Yes, this is impertinent. Customers need to always be checking whether the fusion of the pipes are done in a proper manner. This could cause leakage and seepage of materials, which can be a grave problem, later down the road. The improper fusion process occurs in close vicinity of the installation or repairing zone. The place where the fusion happens is known as “tenet.” This place is protected and does not allow for wind or rain to cause a disruption during the HDPE pipe fusion. Which is, of course, a prerequisite when discussing fusion and pipe suppliers that are required to maintain the standard. The installation of the pipes are needed to be done only when the fusion process has been completed. When discussing lining, the pipe liner needs to be compressed so that it is the same or less than the size of the diameter of the already existing pipe.