Tomkins reports profit, despite 21 percent drop in sales for full year

ERJ staff report (DS)

London -- Tomkins PLC which owns both Gates Rubber and Schrader Electronics, has announced profits for the 12 months to December 2009. The second half was significantly better than the first half.

Overall, said the company sales fell to $4180 million from $5516 million a year previously. However, operating profit increased to $84.7 million from $66.9 million

David Newlands, Chairman, commented, “The first half of 2009 was an exceptionally challenging period for the Group. In the second half, some end markets stabilised, but were down significantly year on year. I am particularly satisfied with management's response to the difficult conditions through the restructuring initiatives and the focus on generating trading cash flow. In line with the guidance we have previously given, I am pleased to announce a final dividend of 6.50 cents per share, resulting in a full year dividend of 10.00 cents per share. We intend to resume our progressive dividend policy from this rebased level as soon as results and market conditions allow. ”

The company did not refer directly to Gates, but said its Schrader unit is expected to deliver stronger profits when legislation over tyre pressure monitoring systems is enforced in Europe from 2011 onwards.

Tomkins said, "We recently completed the construction of a facility in Changzhou, China for our Fluid Power division, which became operational in early 2010. In Izmir, Turkey we started construction of our new Power Transmission facility, due to be completed and operational in the second quarter of 2010."

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Press pack from Tomkins