Deal target Howden sees profits soar

HOWDEN, the Renfrew-based engineering group that looks set to fall into US hands as part of a £1.5 billion takeover, saw operating profits rise by almost 50 per cent in the latest quarter.

Figures yesterday released by parent company Charter International, which is recommending that shareholders accept an offer from pump and valve maker Colfax, showed Howden’s sales rose 24.1 per cent to £156.9 million in the quarter to 30 September. Adjusted operating profits rose by 48.6 per cent to £15.9m.

Charter said Howden’s order intake had remained strong in recent months with particularly buoyant demand from the energy industry.

The Howden contribution, along with an improved performance from welding tools unit Esab, saw Charter report operating profits up 29.9 per cent to £34.8m in the third quarter.

Colfax has described its purchase of Charter as a “transformational acquisition” that will realise significant benefits for both companies.

It has said that the Howden business, which specialises in industrial equipment including air compressors, would be complementary to its fluid handling business.

The US group has said it will launch a strategic review of Charter International if the acquisition goes through. Howden has 4,360 staff including 810 in the UK.