Smiths Group Trims Revenue Outlook on Middle East Impact
The British engineering firm reduced its organic revenue growth forecast to 2% after reporting a 10 million pound hit from regional conflict. Despite the lower sales outlook, the group expects operating margins to exceed 20% due to ongoing cost-saving measures.
SMITHS GROUP PLC lowered its annual organic revenue growth forecast to 2% after a £10 million hit from Middle East trade disruptions. The United Kingdom engineer previously projected growth between 3% and 4% for the fiscal year. Investors are weighing the sales slowdown against improved operating margins and a strengthening order book.
### Conflict Disrupts John Crane Unit The revenue downgrade follows a flat organic performance in the three months ended May 2. Sales were pressured after Iran closed a key transit route through the Strait of Hormuz. This closure followed military actions involving the United States and Israel that began on February 28.
