Dowty Group Earnings 1989

Press release: Dowty Group Earnings 29th June 1989

Transformation of Dowty Group is already bearing fruit with per share earnings up by 12%

With Case Group Plc under its belt and a string of disposals in more mature businesses, Dowty Group Plc is a very different company to the one that reported this time last year, highlighted by the fact that while overall group turnover is up only 9.5% to £684m for the year to March, turnover of the Information Technology sector of the business rose 111%, on which Dowty made operating profits of £17.2m, up 91%.

Aerospace and polymer engineering also contributed to the overall 23% increase in pre tax profits to £79.1m but Electronic Systems were dull, profit up 15% at £10.8m on sales flat at £141.3m.

Dowty has also transformed itself into a thoroughly international player, its UK domestic market business being down not only as a proportion of the total but in absolute terms: at £285m, it fell 3% and now accounts for 42% of the total, down from 47% last year.

The Americas come next with £180m, up 24%; and the rest of Europe put on 15% to £107m. Faster growth was seen the Far East, up 58% at £33.3m, but Africa was static at £7.4m.

Within the businesses, Dowty seems to have shaken the bad patches out of Case and that business contributed £7.4m to profits for the seven months that it was part of the group. The order book in continuing business was 12% ahead of the 1988 figure at £662m.