Tomkins reports automotive recovery in Q1

ERJ staff report (DS)

London -- Tomkins PLC has said it expects to report strong results for the three months to 5 May. IN an interim management statement, James Nicol, Chief Executive Officer, said, "“The Group continued to show encouraging improvement in both sales and adjusted operating profit in the first quarter compared to the fourth quarter of 2009. Increased volumes were driven by greater than anticipated demand throughout our global industrial and automotive end markets, as well as some restocking. These higher volumes, coupled with the benefits from our restructuring initiatives, have resulted in further margin increases with the Group as a whole delivering a double-digit margin in the first quarter of 2010."

The company said, Power Transmission sales in the first quarter compared with the previous quarter were up in line with the markets. It said margins improved over the 13.6 percent reported in the second half of 2009. Sales to the industrial original equipment and replacement markets strengthened, with end market volumes up more than anticipated compared with the fourth quarter of 2009. Demand in the automotive original equipment markets in the first quarter of 2010 was also strong, and sales increased in line with the market. Our global automotive aftermarket continued to perform well.

In fluid power, the company said it returned to profitability, generating a high single-digit adjusted operating margin. It said this was due to higher than anticipated volumes in industrial end markets, which grew strongly compared with the fourth quarter of 2009, particularly in North America, South America and India.

Tomkins owns the Gates and Schrader electronics businesses.

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Press release from Tomkins