LONDON (Sept. 26) — John Crane, the rubber and sealing subsidiary of Smiths Group P.L.C.. reported a double-digit boost in operating earnings last year on 9-percent higher sales.
John Crane´s sales rose 9 percent to $760 million for the year ended July 31. Operating profit increased 22 percent to about $151 million.
Revenue was boosted by 25-percent increase in its supply of seals to original equipment manufacturers in the oil and gas sector, the company said. Projects contributing to this growth were new ethylene cracker plants in China, gas extraction and processing in the United Arab Emirates, and ethane cracker and petrochemical plants in Saudi Arabia.
Strong demand enabled John Crane to pass on commodity price increases. The benefit of volume, together with cost savings, generated the strong profit growth, with margins rising to 14.1 percent, according to the firm.