Smiths Group Stock

Smiths Group plc operates as a technology company severing the medical technology, security and defense, general industrial, oil and gas, and space and commercial aerospace markets worldwide.

Divisions

The company operates in five divisions: John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect, and Flex-Tek. These divisions design, manufacture and support the following products:

John Crane: Mechanical seals, seal support systems, power transmission couplings and specialized filtration systems;

Smiths Medical: Infusion systems, vascular access products, patient airway and temperature management equipment and specialized devices in areas of diagnostics and emergency patient transport;

Smiths Detection: Sensors and systems that detect and identify explosives, narcotics, weapons, chemical agents, biohazards and contraband;

Smiths Interconnect: Specialized electronic and radio frequency board-level and waveguide devices, connectors, cables, test sockets and sub-systems used in connectivity applications; and

Flex-Tek: Engineered components, hosing and rigid tubing that heat and move fluids and gases.

Medical Technology

The company’s products make a vital contribution to its customers’ ability to save and enhance lives. The company focuses heavily on this market and both Smiths Interconnect and Flex-Tek supply solutions that support the manufacture of medical devices.

Security and Defence

The company’s threat detection equipment helps keep people and assets safe. The defence segment is served by Smiths Detection through imaging and sensing detection products and by Smiths Interconnect through secure connectivity solutions.

General Industry

Customers put their trust in the company’s products and services to support a range of general industrial applications in sectors, including petrochemical, mining, pulp and paper, water treatment, semiconductor testing, heating elements, automotive and rail transportation. These sectors and others are served by John Crane, Smiths Interconnect and Flex-Tek, with growth generally tracking increases in GDP worldwide.

Oil and Gas

John Crane’s mechanical seals and systems support oil and gas operations worldwide in downstream refineries, midstream pipelines and gas storage activities.

Space and Commercial Aerospace

Satellite launches, deep space exploration and emerging activities, such as asteroid mining are driving demand for solutions in the space market. Flex-Tek provides hydraulic hoses and fuel lines for airframes and engines and Smiths Interconnect supplies connectors, microwave components and antenna systems for aircraft and satellite communications.

Operations

The company’s product portfolio includes mechanical seals, seal support systems, power transmission couplings and specialised filtration systems. It also has a significant and growing presence in other process industries (around 44% of revenue), including pharmaceutical, chemical, power generation, mining, water treatment, and pulp and paper.

The company’s Infusion Systems products deliver medication for treating conditions, such as acute and chronic pain, cancer, pulmonary hypertension and Parkinson’s disease, in hospital and home settings.

The company’s Vascular Access products protect healthcare workers and patients from the risk of infection. Its portfolio covers a range of functions, including drawing blood, catheters for the infusion of fluids and medication, injecting vaccinations, delivering chemotherapeutic agents and monitoring blood pressure for critically ill patients. Continued growth in the Vascular Access market is expected as safety regulations drive the use of safety-engineered syringes and catheters to protect healthcare workers from needlestick injuries and blood exposure, while reducing hospital-acquired. Its Vital Care products help to manage patient airways before, during and after surgery, alleviating breathing difficulties, improving bronchial hygiene and helping maintain body temperature.

Smiths Medical’s CADD-Solis wireless infusion pump delivers pain medication to patients while allowing them to remain mobile. Integrated with PharmGuard Infusion Management software, this platform supports coordinated wireless updates to drug libraries and software.

The company provides a range of products to the defence market, including microwave technology and connector solutions. It provides test sockets, probe heads and cable assembly solutions for semiconductor testing applications. Its medical portfolio includes signal integrity performance connectors for applications requiring higher bandwidth and data rates, including advanced imaging, augmented reality, and surgical robotics.

In space and commercial aerospace, the company provides connectors, components and satellite communications antenna solutions for various aircraft and space applications. In the rail market, its cable solutions provide communications connectivity and its connector solutions are used in applications, such as control, command and signalling in autonomous train systems.

The company’s business is structured around four segments: Heat Solutions; Construction Products; Fluid Management; and Flexible Solutions. Key markets include U.S. residential and commercial construction, global aerospace tubing and hoses, and electrical heating elements.

The company’s business performance follows macroeconomic indicators, such as U.S. GDP, U.S. housing growth, healthcare spending and capital goods expenditure. Population growth drives residential construction and domestic appliance demand in the U.S.

The company’s Heat Solutions elements are also used in the manufacturing of medical devices, and its Flexible Solutions hoses are used in this market too, particularly for respiratory care devices.

In aerospace, the company provides specialty, assemblies that provide delivery of hydraulic fluids and jet fuel for commercial and military aircraft globally.

Strategy

The key elements of the company's strategy are to focus the portfolio for growth through organic investment and a highly disciplined approach to acquisitions and disposals; increase its focus on higher-growth regions; deliver world-class competitiveness; create a culture of innovation; build a learning organization; and focus the portfolio on sustainably competitive and asset-light businesses. Its strategy is to reinforce its global leadership in technologies and services for rotating equipment, with a competitively differentiated offering that would deliver above-market, long-term growth in the most attractive process industries. Its strategy is to outperform its chosen markets through technological differentiation, with the need for safer, more energy-efficient solutions providing opportunities for it to establish leadership positions across its segments.

Customers

The company serves process industries, including oil and gas, pharmaceutical, chemical, petrochemical, power generation, mining, water treatment, and pulp and paper, as well as pump and turbo machinery original equipment manufacturers. Its customers include Chevron, International Paper, ExxonMobil, Shell, BASF, Sulzer, GE, Solar and Siemens. Its major customers include airports, cargo and freight forwarders, ports, customs authorities, prisons and the armed forces. The company’s blue-chip customers are prime contractors, key original equipment manufacturers and sub-system manufacturers. Examples include Raytheon, Lockheed Martin, BAE Systems, Huawei, NVIDIA and Biosense Webster.

The company serves the U.S. construction industry, domestic appliance, aerospace engine and airframe manufacturers and other specialist markets. Large customers include Watsco, Boeing, Airbus, Pratt & Whitney, GE, Samsung, Trane and Carrier.

Competition

The company’s main competitors are Flowserve and Eagle Burgmann (seals and systems), Danaher and Hydac (filtration), and Rexnord (couplings). Its competitors range from large multi-national medical device manufacturers such as Medtronic, Becton Dickinson, Baxter and B. Braun. Its competitors differ depending on the market being served, including the large multinationals, such as Amphenol, TE and Molex.

History

The company was founded in 1851. It was formerly known as Smiths Industries and changed its name to Smiths Group plc in 2000.