Crane does heavy lifting at Smiths Group

Underlying operating profit, which strips out one-offs, including a big increase in asbestos litigation costs and a £2m currency hit, fell by 2 per cent to £245m at the group level. Thankfully, it grew by 9 per cent at Smiths' biggest money-maker John Crane, despite bad weather in the US. A record-breaking 140 basis-point surge took margins above 23 per cent - a "sustainable" level, according to finance director Peter Turner. A record order book should accelerate sales growth during the second half into the mid single digits, too.

America's housing recovery swelled demand for ducting and flexible gas piping for heating and air-conditioning systems, raising profit at Smiths' flexible hosing business Flex-Tek by 13 per cent. Expect further progress here, says Smiths. It is, however, the smallest division and clearly unable to cover an 18 per cent slump at the far larger medical unit, ravaged by the recurring themes of government funding cuts, fewer procedures and a US medical devices tax. At least the decline is tipped to slow in the months ahead, and new divisional chief Jeff McCaulley is known for fixing underperforming healthcare businesses.

Elsewhere, falling sales to the US military meant there was little joy at detection, the X-ray scanners business, although further cost-cutting should at least limit the damage. Electronics unit Interconnect should return to growth during the second half, too, says Mr Turner. Having downgraded its numbers by 6 per cent, Numis Securities expects full-year adjusted pre-tax profit of £475m, giving adjusted EPS of 88.8p (from £498m and 92.7p in 2013).