Shares in UK defense and electronics giant GEC Plc put on 3% on Thursday to close at 403.5 pence as the company reveled strong profits and a firming up of its reorganization plans to focus on the GEC-Marconi defense business. Net profits for the six months to September 30 were up 85% at 280m pounds on revenue that rose 1.2% to 5.12bn pounds. Alongside the interim results, GEC announced an agreement reached with French partner Alcatel Alsthom SA to float off the power engineering joint venture, GEC- Alsthom, in the first half of next year. Previous estimates have valued the business at between 3bn pounds and 4bn pounds. GEC- Marconi saw pre-tax profits up 29% to 150m pounds while the GPT telecommunications business, which is 60% owned by GEC, saw profits fall by 1m pounds to 66m pounds. The company cited higher R&D costs and downward pricing pressures as the reason. Managing director George Simpson also stated that he was talking with Germany’s Siemens AG about the possible purchase by GEC of the remaining 40%. The interim dividend has been increased by 5.2% to 3.43 pence per share.
