Shares in Smiths Group shed 5% this morning after the engineer disappointed sales expectations.
Oil price weakness hurt demand for oil and gas related services at its John Crane division. There was also a negative impact from delayed product launches at its Smiths Medical unit.
Underlying revenue from the John Crane business declined 4% over the year while sales from Smiths Medical were down 3%.
Challenging conditions in the energy sector saw oil and gas sales from its John Crane business decline by 7%.
However, Smiths claimed the unit continued to expand into non-oil and gas industries, which now make up around 45% of the division´s business. Overall, John Crane accounts for 27% of group revenue.
Smiths said the decline at its medical unit, which accounts for 29% of group revenue was due to weaker performances in Infusion Systems and Vascular Access, where it claims to be in the process of revamping its product offerings.
The segment reported a fall in sales of hospital hardware categories as well as lower-than-expected take up of certain products targeted for home use.