Interim Results 2001
06/09/2001
Highlights
- Sales have increased by 5.8 per cent
- Margins under continuing pressure as a result of the global economic environment
- Exceptional costs of £26 million
- Restructuring in progress; benefits expected to start to come through in 2002
Summary of results
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| Six months ended 30 June | |
2001 | |
2000 |
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| £m | £m | |||
| Turnover | 477.6 | 451.6 | ||
| Underlying operating profit | 13.5 | 27.0 | ||
| Underlying profit before tax | 4.0 | 19.1 | ||
| Exceptional costs | (26.0) | (1.5) | ||
| (Loss)/profit before tax | (22.0) | 17.6 | ||
|
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| pence | pence | |||
| Underlying earnings per share | 3.1 | 13.3 | ||
Commenting today, David Gawler, Chairman and Chief Executive said:
‘’At the time of the annual general meeting it was confirmed that a strategic and operational review was being undertaken throughout the group. As a result the group has now begun a major restructuring programme, which includes the rationalisation of the Charter head office, the closure of ESAB’s Atlanta office, the phased reduction in manufacturing capacity and the closure of plants in both ESAB and Howden. Financial controls are also being strengthened further across the group. First half results have been affected by the costs of this programme and further measures will be taken in the second half. These actions will result in improved operational efficiency and the group’s ongoing cost base being reduced. The impact of these actions will start to benefit the group’s results in 2002.’’
‘’In ESAB, sales are ahead of last year, due largely to European demand, although evidence of a slowdown in Europe is emerging. Operating margins have been reduced by the downturn in the Americas and in other global markets. In Howden, the power business is growing in the USA and China, but the European market remains depressed. Conditions in the industrial sectors in which the group generally operates have proved difficult with margins under pressure and are unlikely to improve until some time in 2002."
“Management anticipate that the underlying operating profit in the second half will be better than that achieved in the first. Furthermore the underlying operating profit for the full year, provided market conditions do not deteriorate further, could be in line with that achieved last year. ”
Contact
Andrew Fenwick; Helen Shepard, Brunswick +44 (0)20 7404 5959
David Gawler, Chairman & Chief Executive; David Eilbeck, Finance Director
+44(0)20 7404 5959
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