LONDON -- British engineering firm Tomkins Plc reported a forecast-beating 11 percent rise in underlying third-quarter earnings on Wednesday after revenue from new acquisitions helped offset a tough U.S. automotive market.
Tomkins, which sells parts used in car engines and air conditioners, said it expected its performance in the current year to meet market expectations.
"The contribution from our recent acquisitions and the actions we have taken to improve profitability during difficult market conditions are expected to result in continued progress," Tomkins said in a statement.
Tomkins shares had jumped 4.2 percent to 282 pence by 0840 GMT in a flat broader market.
Tomkins said profit from operations before restructuring for the three months to the end of September was 83.1 million pounds ($142 million), up from 74.8 million pounds previously.
Tomkins said the consensus market forecast was 79 million pounds, in a range of 74-81 million pounds.
Net profit for the period fell to 43.9 million pounds from 46.9 million pounds.
Chief Executive James Nicol said the result was driven by recent acquisitions, offsetting a difficult North American automotive market and the effect of two hurricanes in the United States during the quarter.
Tomkins was also hit with a soft non-residential construction market and higher raw material costs due to supply disruptions.
Tomkins, which makes 65 percent of sales in the United States, said weak production volume, particularly at U.S. auto giants Ford Motor Co. and General Motors were challenging.
Ford and General Motors have been trying to counter fierce competition from foreign automakers while high oil prices eat into demand for their more profitable sport utility vehicles.
Tomkins is targeting an additional $300 million or more in sales this year from the five acquisitions it has made since December 2004. So far, it has achieved $250 million.
The company has shed more than 3,000 jobs and sold non-core businesses as part of a three-year revamp. It is selling some businesses and property as part of a restructure.
The consensus market forecast for Tomkins' full-year profit from operations before restructuring is 301.8 million pounds, in a range of 287-311 million pounds, according to figures provided by the company.