GEC Plc’s UKP342m pre-tax profit for the six months to September 30 may include contributions from the Plessey and Ferbanti businesses acquired last year, as well as GEC Plessey Telecommunications’ trading results, but commitment of liquid resources has substantially diminished interest income. Consequently, although operating profits have grown by 14%, the UKP342m is 4% less than last year’s figure of UKP357m, net profits are down by 48% to UKP207m, and turnover is up to UKP4,395m, an increase of 19.9%. GEC says that outstanding orders at the end of the six months are at a record level of UKP10,800m, of which, UKP4,800m is derived from joint ventures and associated companies. The electronic systems division experienced a growth in sales, mainly from former Plessey and Ferranti businesses, but GEC says this has yet to be matched by a corresponding increase in profits, although the division reported UKP99m, a UKP17m increase on last year. Power systems and telecommunications are also profitable, UKP58m and UKP53m respectively, compared to UKP54m and UKP20m in 1989. GEC says that both businesses are operating satisfactorily and telecommunications comprises the trading results of GEC Plessey Telecom. Consumer goods, electronic metrology and office equipment and printing are all in profit, although office and equipment is down to UKP14m from UKP20m, and GEC attributes this to exchange rate fluctuations and adverse conditions in the US. Medical equipment and distribution and trading divisions are profitable, but both are down on last year, and the company again cites difficult trading conditions and the value of the US dollar. Electronic components made a loss of UKP3m, against a UKP6m profit last time, and GEC says that rationalisation measures and a cut in manufacturing capacity affected performance.
