Dyson: energy costs hit profits

High fuel prices are set to cut profits in fiscal 2005 by GBP 900,000, performance materials manufacturer Dyson Group PLC said.
Assuming that energy prices remain stable, Dyson said profits for 2006 …

High fuel prices are set to cut profits in fiscal 2005 by GBP 900,000, performance materials manufacturer Dyson Group PLC said. Assuming that energy prices remain stable, Dyson said profits for 2006 would be affected by about GBP 1.8 million. The company reviewed operations following the end of its fixed price energy contracts. Dyson warned at its annual meeting in August 2005 that energy costs would have a significant impact on the group. “However, we continue to take management action to mitigate this impact so far as possible, as we have done successfully in the past,” the group said in a statement. Dyson, which makes performance materials and thermal products for a range of industries, said the higher costs had affected both its thermal technologies and performance materials divisions in equal measure. The group said it is continuing its rationalisation programme to optimise cash generation at its traditional thermal technology operations, which are exposed to more difficult trading in the steel and glass industries. Sales continue to grow strongly in its performance materials division Ecoflex. “Overall, the Group“s strategy for increasing shareholder value remains on track,” it said.