Tomkins boosted by takeover plan

CAR parts maker Tomkins which is in the process of being acquired, posted a 229 per cent rise in first-half adjusted operating profit but warned on second-half performance.

Tomkins reported adjusted operating profit of $295.5m (£185.9m) for the first six months of the year, beating the $89.8m posted in the same period last year, and above the $290m it forecast in mid-July.

The company said profits were boosted by a recovery in demand from car manufacturers and restocking by customers.

Measures taken to restructure the business and cut costs over the last few years also helped profits.

Chairman David Newlands in a statement: "We believe that global economic uncertainty coupled with recent downward trends in some macro indicators is likely to impact negatively our end markets in the second half of 2010 compared to the first half."

Tomkins, once one of Britain's biggest industrial groups, agreed to a £2.9bn takeover offer from Canadian investors Onex Corp and the Canada Pension Plan Investment Board in July.

Tomkins full-year operating profit was forecast at $475m on average, with a range of $361m to $551m.

Shares in Tomkins, which have risen by 45 per cent in the last month since the company received a takeover approach.