UK industrial group Smiths expects its aerospace division to continue its current strong growth for several years, following a 17% increase in interim sales, assuming a constant exchange rate.
Sales were up from £457 million ($880 million) to £514 million for the six months ending 31 January 2005, compared with the same period a year earlier, as production rates at Airbus and Boeing increased, particularly in the narrowbody sector, driving aircraft systems demand at the manufacturer.
Smiths says its engine components business is also receiving more orders and "the commercial aftermarket, which for Smiths was initially slow to recover, is now growing firmly in step with airline traffic".
The company's military division "continues to perform strongly" and Smiths expects sustained growth to continue, despite US plans to reduce defence spending, because of its high capture rate on recent programmes and increasing international demand.
Smiths hopes to boost the proportion of work it undertakes on civil programmes to ensure a balance compared with military programmes.
The company's work split is currently around 60/40 in favour of defence, whereas it feels a 50/50 split would be ideal. "We certainly hope to play a role on the [Airbus] A350," the company says.
Elsewhere in the business, the £490 million acquisition of Medex was due to be completed on 21 March.
The Smiths group as a whole increased its pre-tax profit by 16% to £155 million.
HELEN MASSY-BERESFORD/LONDON
Source: Flight International