Kidde profits burned by dollar exchange rate
Kidde, the fire protection group, warned yesterday that the weak dollar would knock about £10m off its profits for last year but gave an upbeat assessment of its prospects for 2004.
The company, which makes fire engines, escape ladders and fire protection systems for aircraft, said currency effects would offset the cost savings it had achieved through efficiency improvements.
The US market accounts for about half of Kidde's sales and an even higher proportion of profits, leaving it more exposed to currency fluctuations than other British engineering companies.
Despite the reduction in US profits, Kidde said last year as a whole had seen a return to sales growth and improved margins. Commercial aerospace sales were down modestly while demand for combustion control products suffered from the downturn in the US electricity market. But Kidde's military business remained strong and it increased sales at its residential and commercial division.
Kidde said it had hedging contracts in place this year to protect its US earnings at a "worst-case" exchange rate of $1.635 to the pound. Yesterday's rate was around $1.83.
Animals found with 'puncture holes the size of a human finger'
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
- 2 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 3 Black Friday 2014: Opening hours for John Lewis, Asda, PC World, GAME and Argos
- 4 Bill Cosby: Isn’t it obvious why his accusers have stayed silent up until now?
- 5 Jeremy Hunt: 'I took my children to A&E because I didn't want to wait for GP appointment'
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Sarah Vine on Jack Monroe being a lesbian mother: 'If she was unsure about her sexuality, she should have taken greater precautions'
Black Friday 2014: Opening hours for John Lewis, Asda, PC World, GAME and Argos
Michael Brown shooting: Ten things we know – or know better – now the Ferguson grand jury's work is over
Ferguson riots: The most powerful images to emerge from protests over Michael Brown killing
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Revealed: How the world gets rich – from privatising British public services
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£Attractive: Citifocus Ltd: High calibre individual with significant product d...
£Negotiable: Citifocus Ltd: Leading global bank seeks experienced credit analy...
£Attractive Package: Citifocus Ltd: High calibre individual with a high degree...
£Attractive: Citifocus Ltd: High calibre individual with superior academics an...