Brammer Plc, a U.K. distributor of bearings and power-transmission products, said profit jumped in 2010 after a “strong recovery” in the European economy boosted sales.
Net income rose to 13.8 million pounds ($22 million), or 13 pence a share, from 58,000 pounds, or 0.1 penny, a year earlier, the Manchester, England-based company said today in a statement. Revenue rose 9.9 percent to 468.4 million pounds.
“The outcome indicates a continuance of both the recovery, which became evident towards the end of the first quarter of 2010, and further market-share gains,” Chairman David Dunn said in the statement. “The early evidence in 2011 is encouraging,” with sales in January at operations open at least a year rising by more than 20 percent.
Brammer had called business in 2009 the “most difficult in recent times” after sales slumped amid the U.K.’s deepest recession since World War II. Earnings that year were held back by a 12.9 million-pound charge for eliminating jobs and reducing inventory, which the company said reduced annual operating costs by 15.8 million pounds.
Sales growth in 2010 was propelled by a 35 percent jump at its food and drink equipment business and a 32 percent gain at the pulp and paper machinery unit, Brammer said. Earnings before interest, taxes and amortization and excluding exceptional items or currency shifts rose 30 percent, led by jumps of 63 percent in Belgium, the Netherlands and Luxembourg, 41 percent in the U.K. and 26 percent in eastern Europe.
Brammer declined as much as 0.5 percent to 251.75 pence and was down 0.4 percent as of 8:50 a.m. in London trading. That pared the stock’s gain for this year to 0.8 percent.
The company plans a final dividend of 4.5 pence a share, an increase of 25 percent from a year earlier.
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