Intertek sees strong H2 amid testing times

By Jonathan Cable

LONDON (Reuters) - Testing and inspections company Intertek Group (ITRK.L) expects a strong performance in the second half, it said on Monday as it posted a forecast-beating 20.1 percent rise in first-half profit.

"It will be a good second half of the year. The structural drivers are not dependent on the economic situation, we have had very strong results," Chief Executive Wolfhart Hauser told Reuters.

Intertek, which owns over 1,000 laboratories in 110 countries, reported an adjusted operating profit for the six months to end-June of 68.7 million pounds, as revenue rose 21.3 percent to 457.4 million pounds.

"The first-half results from Intertek were significantly ahead of our and market expectations. We are likely to upgrade our 2008 estimates," said analyst Kevin Lapwood at brokerage Seymour Pierce.

The group said revenue grew in all of its divisions, apart from government services which fell because a contract in Ecuador ended, and its Consumer Goods and Oil, Chemical & Agriculture units saw particularly strong organic growth.

Rival SGS (SGSN.VX), the world's largest inspection, testing and certification firm, also recently beat forecasts with a 62 percent rise in first-half net profit while France's Bureau Veritas (BVI.PA) said in June it expected solid growth.

ACQUISTIONS

Intertek made eight acquisitions during the six months for 40.3 million pounds and Hauser said the group had a good pipeline and would make more strategic acquisitions in the second half.