Aerospace slump knocks Kidde

FIREFIGHTER Kidde's problems in extinguishing the crisis that threatened to consume earnings in the aftermath of the terrorist attacks on the US, hit profits last year and could cause more trouble in the current period.

Its major market, supplying aerospace companies with sophisticated firefighting equipment, suffered an immediate decline of up to 30% in business after 11 September. Chief executive Michael Harper expects a decline in sales and margins this year but remains optimistic about Kidde's overall prospects.

Pre-tax profits slipped to £67.1m in the year to December from £72.1m the time before. The final dividend is up 6.7% to 1.6p, for a full-year total of 2.4p.

Harper said he was encouraged by upbeat remarks made by Federal Reserve chairman Alan Greenspan on Tuesday as 55% of Kidde's business is in the US. He is looking for a margin improvement for the aerospace business in the current year and has high hopes of obtaining orders from the petrochemicals sector.

Kidde goes into the year with an order book of £300m, which is about the same as the beginning of 2001. With cashflow strengthening, Harper hopes to make more acquisitions.