Profits soar at rejigged FKI

FKI’s engineering division reorganisation, which be-gan in 1996 and cost 800 jobs, will be completed this year when two new factories open in South Wales. The Halifax-based group this week revealed a 66% rise in group pre-tax profits of £145m for the year to March, on sales of £1.3bn, up from £1bn last year. The […]

FKI’s engineering division reorganisation, which be-gan in 1996 and cost 800 jobs, will be completed this year when two new factories open in South Wales.

The Halifax-based group this week revealed a 66% rise in group pre-tax profits of £145m for the year to March, on sales of £1.3bn, up from £1bn last year.

The engineering division contributed £41.3m to group operating profits, a rise of 88% on last year.

Operating profits from FKI’s other two core businesses of material handling and hardware were £51.3m and £56.7m respectively.

FKI has invested about £7m in the two adjacent facilities in Wales, which it hopes will prove ‘centres of excellence’ in the manufacture of transformers and switchgear.

Restructuring of the engineering division, which also makes rotating machines, started with the acquisition of electric motors businesses Hawker Siddeley Electric Power Group and Marelli Motori two years ago.

Operating margins have already improved, rising across the group from 12.1% in 1997 to 12.3% this year.