Kidde reports flat earnings for 2001
Fire protection products generated half of profits
LONDON-Kidde PLC, a worldwide fire products supplier, said in January that falling sales in its aerospace sector would not be offset by cost-cutting measures the company put in place in 2001.
Although sales in that division, stemming from the slowing U.S. economy, the Sept. 11 terrorist attacks and a drop in air travel, fell 25 percent, the company did see some recovery in October and November.
Sales of fire protection products to that industry made up approximately 50 percent of pre-interest profits in the first half of 2001.
The company's overall profits for 2001 are expected to remain essentially flat at 108.3 million pounds, or $155.9 million, before exceptional items and goodwill amortization.Ã‚Â Organic growth at the company was about three percent.
The company's North American fire protection operations grew only three percent after what the company termed "difficult and uncertain second-half trading."
"Kidde is a resilient business that is capable of performing in difficult market conditions," said Michael Harper, chief executive of Kidde.
"We have taken action to meet the changing and uncertain market conditions of 2002 and I am confident that we will continue to develop Kidde as a premier fire protection business," he said.
Restructuring efforts undertaken by the company were expected to save Kidde about seven million pounds, or more than $10 million by 2003.