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Smiths shares fall after profit warning over security legal disputes Smiths shares fall after profit warning over security legal disputes
(2 months later)
Shares in the British engineering company Smiths Group fell almost 5% after it warned that profits would take a £15m hit over legal disputes in its transport security business.Shares in the British engineering company Smiths Group fell almost 5% after it warned that profits would take a £15m hit over legal disputes in its transport security business.
Smiths Detection, which makes security scanners and x-ray machines for airports, borders and military checkpoints, is putting aside funds to meet legal costs in three contracts that "are anticipated to be materially adverse to previous expectations", according to a company statement.Smiths Detection, which makes security scanners and x-ray machines for airports, borders and military checkpoints, is putting aside funds to meet legal costs in three contracts that "are anticipated to be materially adverse to previous expectations", according to a company statement.
A company spokesman said Smiths had initiated "some of the legal action" over not being paid on time and added there were ongoing disputes over whether the machines were working correctly.A company spokesman said Smiths had initiated "some of the legal action" over not being paid on time and added there were ongoing disputes over whether the machines were working correctly.
He declined to give further details.He declined to give further details.
The profit warning sent shares in Smiths Group tumbling 4.6% to £13.15 when the markets opened.The profit warning sent shares in Smiths Group tumbling 4.6% to £13.15 when the markets opened.
Smiths Detection accounts for almost a fifth of the revenues of Smiths Group, whose other divisions include medical devices and components for heating and air-conditioning systems. The FTSE 100 company, which traces its routes back to the Victorian clock and watch maker Samuel Smith, reported operating profits of £554m in 2012 and will publish its full-year results on 18 September.Smiths Detection accounts for almost a fifth of the revenues of Smiths Group, whose other divisions include medical devices and components for heating and air-conditioning systems. The FTSE 100 company, which traces its routes back to the Victorian clock and watch maker Samuel Smith, reported operating profits of £554m in 2012 and will publish its full-year results on 18 September.
Smiths Detection, founded in 2003 to capitalise on growing demand for security devices, supplies sensors that can detect explosives and weapons to 180 countries, and counts the Ministry of Defence and US defence department among its customers.Smiths Detection, founded in 2003 to capitalise on growing demand for security devices, supplies sensors that can detect explosives and weapons to 180 countries, and counts the Ministry of Defence and US defence department among its customers.
Legal cases are unrelated to class actions over asbestos poisoning at Smiths Group's John Crane division, which supplies products and services to the oil and gas industry, the spokesman confirmed.Legal cases are unrelated to class actions over asbestos poisoning at Smiths Group's John Crane division, which supplies products and services to the oil and gas industry, the spokesman confirmed.
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