Tomkins Plc Business Report FY2010

Business Highlights

Financial Overview

(in million dollars)

	FY2010	FY2009	Rate of change (%)	Factors
Consolidated Income Statement (selected)
Revenue	4,853.9	4,180.1	16.1	-
Profit from operations	136.1	84.7	60.7	-
Industrial & Automotive (I&A)
Revenue	3,872.2	3,129.1	23.7	1)
Profit from operations	304.8	130.5	133.6	-

Factors
1)
Power Transmission segment
-Sales in Power Transmission segment were $2,136.7 million for Fiscal 2010 compared with $1,763.4 million for Fiscal 2009, an increase of 21.2%, that was due primarily to further strengthening of all of our end markets, particularly the industrial end markets.
-Sales to the industrial OE and replacement markets (together 25.5% of Power Transmission’s Fiscal 2010 sales) grew by 33.0% compared with Fiscal 2009, because of improved demand.
-Sales to the automotive OE market (41.1% of Power Transmission’s Fiscal 2010 sales), were up by 27.1% during Fiscal 2010 compared with Fiscal 2009, driven by strong growth in North America and China. In North America, this growth was due to the unprecedentedly low sales volumes in the prior year as a result of extended plant shutdowns and significantly depressed sales by automotive OEMs, including the Chapter 11 restructurings of General Motors and Chrysler.
-Sales to the higher margin automotive aftermarket (33.4% of Power Transmission’s Fiscal 2010 sales) continued to perform well, increasing by 7.7% compared with Fiscal 2009 due to increased demand by end users driven by the increased size and age of the global vehicle population, the greater number of miles driven, and, additionally in China, government subsidies.

Fluid Power
-Sales in Fluid Power segment were $784.5 million for Fiscal 2010 compared with $588.7 million for Fiscal 2009, an increase of 33.3%.
-Sales to the industrial replacement market (49.5% of Fluid Power’s Fiscal 2010 sales) were up by 33.1% compared with Fiscal 2009 due to increased utilization of industrial equipment driven by the economic recovery, particularly in North America.
-Sales to the industrial OE market (30.7% of Fluid Power’s Fiscal 2010 sales) were up by 49.9% in Fiscal 2010 compared with Fiscal 2009, due to the continued recovery in all of our regional end markets.

Sensors & Valves segment
-Sales in Sensors & Valves segment were $402.2 million for Fiscal 2010 compared with $313.6 million for Fiscal 2009, an increase of 28.3%, that was primarily the result of the higher product volumes demanded by the automotive OE market (which comprised 77.1% of Sensors & Valves’ Fiscal 2010 sales), particularly in North America and Asia. During Fiscal 2009, extended plant shutdowns, which were particularly extensive in the North American automotive OE end market (particularly during the Chapter 11 restructurings of General Motors and Chrysler), and significantly depressed sales by automotive OEMs, affected sales levels at the Schrader Electronics business. Schrader International’s automotive aftermarket business, which accounts for the remainder of Sensors & Valves’ sales, grew as a result of improving conditions in those markets compared with Fiscal 2009.