A strong worldwide electronics marketplace, record levels of new product introductions within the company and a continuing trend for buying power conversion products from independents were cited as the factors behind Astec (BSR) Plc’s improved first half performance. The company reported profits up 29% at ú6.5m on turnover up 16.0% at 174.3m. But the markets remain unimpressed and Pegasus share price dropped one pence to 118p. The Power Conversion business saw sales up 13.2% on last time at ú135.1m with its DC-DC AMPSS product continuing to be the fastest growing business segment, it said. The period also saw Astec’s Philippines manufacturing plant reach full-scale production. Output from the manufacturing plant in China was also reported to have increased significantly with the engineering plant in Manila now up to full capacity. Although the company is still having problems satisfying product demand and is experiencing what it describes as a record order backlog. A manufacturing agreement with a Japanese distributor Tokin Sales & Marketing Co has also been signed to boost sales for the Power Conversion business. Sales for the Electronic Components division were also 26.3% ahead of last year at ú39.2m. Astec said that it would continue to focus this business on profitable niche markets within the passive Electronic Components market. An increased tax charge of 19.0%, up from 15.0%, resulted from continued profitablity in worldwide business and better than expected growth in Japan and Europe, the Hong Kong-based company said. Healthy results have prompted the board to recommend a dividend of 0.50 pence per share, a 25% increase on last time. Astec chief executive David Farr said that the sustained improvement in profitable growth would continue in the second half.
