Sir Christopher Lewinton, chairman and chief executive, said all three core TI businesses achieved market share gains and increased profits despite unfavourable market conditions. This year had begun with strong order books.
Adjusting for a full year of Dowty, acquired for pounds 500m in mid- 1992, group profits rose by pounds 7m, including a pounds 2m favourable exchange rate impact, after charging pounds 6.2m for redundancy costs in its German automotive operations and also at Dowty.
Earnings slipped from 18.3p to 18.1p before exceptional items reflecting the impact of the Dowty acquisition. This has diluted TI's earnings by about 5 per cent because the slump in aerospace markets has gone on for longer than expected. The dividend, covered 1.6 times, is going up by 5 per cent with a final payment of 7.4p.
The strongest performance came from Bundy, where profits rose from pounds 39.4m to pounds 46.1m, or by 11 per cent at constant exchange rates, despite a sharp downturn in European car markets. Margins held steady at 8 per cent.
Bundy's brake and fuel-line products gained market share substantially in North America and Europe, where it suffered volume declines of only about 5 per cent against a market fall of 15 per cent.
John Crane, where profits rose from pounds 53.1m to pounds 61.6m but were flat at constant exchange rates, overcame poor demand for its mechanical seals from traditional chemical and oil customers by marketing aggressively to new sectors such as paper and pulp and Asian shipping markets, which are expanding rapidly. Nevertheless, margins eased back from 14.7 per cent to 13.7 per cent.
Dowty Aerospace reported profits of pounds 25.8m against pounds 14.6m, or underlying profits growth of 16 per cent, reflecting rationalisation of its landing gear business. Provisions of pounds 33m were used in the year, leaving a balance of only pounds 4m.
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