Profits get a boost as Tomkins plans to engineer growth in uncertain times

The company, which makes industrial and automotive parts, also raised its final dividend more than three-fold to 6.5 cents.

"For 2010, we see some signs of trading improvement, but the outlook remains uncertain," chief executive James Nicol said.

"We will probably see better demand in markets like North American automotive OE (original equipment) in the first part of the year, but markets like non-residential construction will remain weak both in North America and in places like India," Nicol said.

Tomkins is a global engineering and manufacturing group, listed on the London Stock Exchange and the New York Stock Exchange.

It manufactures a variety of products for the industrial, automotive and building products markets across the world.

The company was founded in 1925 as FH Tomkins Buckle Company, a small British manufacturer of buckles and fasteners.

Tomkins, which bought air-filter maker Koch Filter Corp for $35.5m on Friday, said it would continue to acquire companies with sales of

$15m to $100m to expand its business globally.

"We will continue to add green products to the portfolio because we are convinced that there will be continued demand for fuel-efficient products that reduce either the draw on electrical grid in buildings or fuel consumption by cars," Mr Nicol said.

The company also plans to open 14 new facilities in its engineering and services divisions. For the year ending January 2, Tomkins posted a pre-tax profit of $38.4m, compared with a loss of $8.1m in 2008. Sales fell 24.2 per cent to $4.18bn. It recognised a gain of $63m related to the closing of post-retirement healthcare and pension plans in the United States and $0.2m from the disposal of some businesses.

Tomkins, which reduced net debt by 56.4 per cent to $207.5m in 2009, said it had adequate financial resources for the foreseeable future.

Its shares closed up 12.9p to 205.5p yesterday on the London Stock Exchange.