Smiths hopes for bomb-scan boost

KEITH Butler-Wheelhouse, chief executive of engineering group Smiths, is hoping for huge orders for bomb detection equipment from US container ports following last month's British alert at Dover.

The group, which became the world's biggest maker of airport x-ray machines with the £236m purchase of Germany's Heimann last December, reported full-year profits in line with market expectations.

Pre-tax profits fell from £277m to £217m for the year to 31 July, reflecting extensive restructuring and the sale of its polymer seals business for £495m.

The shake-up has given Smiths greater focus in markets for military aircraft, security equipment and medical products. It also helped slash group net debts from £1.5bn three years ago to about £250m.

Profits from the detection arm more than doubled to £71m after a US airports order for 3,000 explosives detectors last year. However, the aerospace division's contribution dived from £139m to £105m due to weak demand.

Operating profits from continuing operations rose by 2% to £372m on turnover up from £2.58bn to £2.63bn. Total dividend for the year is raised 2% to 26p.