Engineering conglomerate Smiths Group Plc (>> Smiths Group) posted a 17 percent rise in full-year pre-tax profit on Friday, helped by growth in its security scanners business.
Smiths Group, a provider of hospital equipment, industrial services and sensors to detect explosives, said pre-tax profit rose to 528 million pounds ($717.50 million) for the year ended July 31, exceeding company-compiled analyst estimate of 522 million pounds.
The FTSE 100 company's revenue rose 11 percent to 3.28 billion pounds. Analysts were expecting revenue of 3.296 billion pounds, company-compiled estimates showed.
Sales in the group's detection unit, which makes security sensors for air transportation, ports, borders and military, rose 30.6 percent to 687 million pounds.
"In Smiths Detection we anticipate a strong second half driven by air transportation, which should generate good growth for the year as a whole," Chief Executive Andy Reynolds Smith said in a statement.
To bulk up the division, the company agreed last year to purchase Safran's (>> Safran) U.S. Morpho Detection business for $710 million.
Growth in the Detection unit has helped the company cushion the decline in the John Crane unit, which makes mechanical seals and other products for companies such as BP (>> BP) and Chevron (>> Chevron Corporation).
Revenue in the John Crane unit fell 4 percent, on an underlying basis, while sales at the medical unit fell 3 percent on delay in certain new product launches.
The introduction of new products during the year is expected to support a gradual improvement in the medical division, CEO Smith said.
($1 = 0.7359 pounds)
(Reporting By Justin George Varghese in Bengaluru; Editing by Amrutha Gayathri)