Recovery for material characterization solutions for the metals and mining industry, along with sustained growth for products used by the electronics industry and strong demand from emerging territories, boosted sales for British companies Oxford Instruments and Spectris.

For the fiscal year 2011 ending March 31, Oxford Instruments’ sales climbed 24.0% to £262.3 million ($409.8 million = £0.64 = $1), including 1.1% growth from currency. Orders increased 9.4% to £273.5 million ($427.3 million). Excluding a one-time order for superconducting wire in the previous year, orders jumped 30.5%. Revenue growth was driven by new products and strong demand from industrial and research-related customers in emerging markets. However, revenue growth was offset 1.4% due to pricing pressure. Adjusted operating income soared 91.2% to £28.1 million ($43.9 million) as a result of enhanced operating efficiencies and higher sales volume. Gross margin slipped 110 basis points to 41.7% of sales as a result of product mix.

Revenue for the Nanotechnology Tools (NT) business improved 19.6% to represent 46% of sales due to strong demand for nano-characterization solutions. The Plasma Technology business also performed well as a result of strong demand for photovoltaic and high-brightness LED products in Asia. NT operating profit climbed 78.0% to £14.6 million ($22.8 million). Sales for the Industrial Products (IP) segment climbed 34.6% to make up 36% of sales. The IP segment had strong sales of X-ray fluorescence and optical emissions spectroscopy analyzers to the metals and petroleum markets, as well as continued shipments of superconducting wire for the International Thermonuclear Experimental Reactor project. IP operating income increased by nearly six times to £5.9 million ($9.2 million). Revenue for the Service business grew 11.6% to account for 17% of sales, and operating profit increased 38.2% to £7.6 million ($11.9 million).

For the first half of the year, sales for Spectris’s Materials Analysis (MA) segment grew 30.8%, 25.7% organically, to £156.1 million ($253.8 million = £0.62 = $1) to account for 31% of company sales. Acquisitions contributed 6.0% to revenue growth, and currency lowered sales by 0.9%. Organic sales were driven by strong demand for X-ray analysis systems, particularly from the metals, minerals and mining sectors in China, Brazil and Australia, as well as from construction-related customers in China, India and the Middle East. The company secured two laboratory automation projects in Germany during the period. Sales to pharmaceutical customers were strong as a result of heightened safety regulations and increased demand from the biopharmaceutical market. Academic and research-related sales improved, but growth was confined to areas of alternative energy, new materials development and biotechnology applications in emerging territories. Electronic sales maintained strong growth for flat-panel displays and LEDs and also benefited from the acquisition of Omec (see IBO 11/15/10), which reported higher sales of photovoltaic analyzers. Adjusted MA operating profit jumped 74.8% to £24.3 million ($39.5 million), and operating margin expanded 390 basis points to 15.6% of sales.

 Oxford Instruments FYE 2011
                       %Rev.Growth    % of Rev.
 USA                         22.8%         25%
 Rest of Europe              35.7%         18%
 Rest of Asia                30.2%         13%
 UK                          -0.4%          9%
 Japan                       23.3%         11%
 China                       70.1%         15%
 Germany                    -23.8%          5%
 Rest of World               16.3%          5%