Trading Statement

Smiths Group PLC
03 August 2004


Smiths Group - trading statement


Smiths Group will announce its preliminary results for the year ended 31 July
2004 on Wednesday, 22 September.  At the start of its close period, the company
is issuing the following trading update.

At the interim results in March, Smiths indicated that delivering full year
expectations depended on a second half recovery in Detection and continued
progress in the other divisions.  It is now clear that both objectives have been
achieved.

The company expects 2004 pre-tax profit and earnings per share from continuing
operations, before exceptionals and goodwill amortisation, to match those
reported in 2003.  On turnover very close to 2003 (continuing operations),
operating profit is expected to be only modestly below last year's performance,
despite a £20m adverse currency translation effect this year from the weaker US
dollar and the benefit in 2003 of a large, one-off order from the TSA.

At the divisional level, Smiths currently expects Aerospace sales to be steady
year-on-year, with margins of 10%; Detection sales to be 20% up, with margins of
17%; Medical sales to be steady, with margins of 19%; and Specialty Engineering
sales to be slightly lower, due to a number of small disposals, with margins of
13%.

Net interest expense will be lower than 2003.  This reflects strong operating
cash-flow, the phasing of the £220m acquisition spend late in the year and
higher interest rates on sterling deposits versus stable dollar borrowing costs.
  Year end net debt is expected to be circa £300m.

Looking ahead to the next financial year, Keith Butler-Wheelhouse, Chief
Executive commented: 'Smiths has made good progress in the second half of the
year just ended.  We expect to achieve continued growth in all four divisions in
the year ahead.  The improvements will come in equal measure from underlying
growth, recent acquisitions and the benefits of the restructuring already
underway, with currency translation potentially the negative factor.'

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