Commenting on the results, Keith Butler-Wheelhouse, Chief Executive said: We delivered strong growth in all four divisions in 2001, at the same time as demerging Automotive and focusing on the real opportunities in our core activities.
- Operating profit on continuing activities up 13% to 525m
- Increased sales and profits from all four divisions
- Margins maintained at 15%, cash at 80% of profits
- Dividend increased by 5% to 25.00p for the year
- Successful demerger of Automotive
- Restructuring in Aerospace and Sealing
- Solutions well underway
In an uncertain economic environment following the tragic events of 11 September, our wide range of activities will provide resilience in difficult market conditions. The slowdown will principally affect our civil aerospace business, which in total is less than 20% of group sales. The outlook for our other activities, especially defence and medical, remains positive.
Smiths Group: Preliminary Results 2001 Financial performance: for the 12 months to 31 July 2001
|Total, incl discontinued activities||Continuing activities|
|Group Operating profit||651||622||525||465|
|Earnings per share||68.3p||68.6p||57.4p||54.5p|
before exceptionals and amortisation
Including its now demerged automotive business, Smiths Group earned pre-tax profits of 535m before exceptionals and amortisation, generating earnings per share of 68.3p for the year ended 31 July 2001, (37.3p) after exceptionals and amortisation.
On sales of 3.5 billion from continuing activities, the company recorded operating profits of 525m, an increase of 13% from the previous year. After allocating interest costs on a pro-forma basis, the pre-tax profit on the continuing activities was up 5% at 448m, and earnings per share were up 6% at 57.4p. The Board is recommending a final dividend of 16.25p, bringing the total for the year to 25.00p, an increase on the ordinary dividend of 5% and more than twice covered by continuing EPS.
The companys four divisions Aerospace, Sealing Solutions, Medical and Industrial performed strongly during 2001, mainly as a result of organic growth, and achieved an average profit margin of 15%. Acquisitions costing 166m made a part year contribution of 9m to profits.