UK: Components maker finds ways round GM and Ford cut-backs
UK-based engineering group Tomkins has compensated for sales lost due to General Motors and Ford restructuring cuts by selling more components to import brand automakers and acquiring additional companies outside the autos sector.
According to the Daily Telegraph, chief executive James Nicol, announcing a 1.4% rise in annual profits to GBP308.5m, said: "We sell to everybody in that market now, including Nissan, Toyota and Honda. We produced parts for 220m cars last year and by 2010 we're aiming for 250m vehicles."
The CEO of Tomkins, which sells parts for air conditioners as well as engines, also said that as part of its strategy to replace lost sales in the US, it had made five group acquisitions with annual sales worth £140m, the paper added.
Only ne of these is directly in the automotive sector: LE Technologies, a trailer frame maker.
Nicol said the group was eyeing other acquisition opportunities, the Daily Telegraph noted.
He reportedly added the group would continue to expand in high-growth China and India.