Control Instruments benefits from downsizing

Downsizing and selling off weak assets helped automotive parts manufacturer Control Instruments (CNL) report interim headline earnings per share for the six months ended June of 3.24c from a loss of 4.71c for the same period last year.

"Management's focus during the first half of 2012 centred on the execution of the decision to exit the original equipment manufacturing business‚ downsize the head office and transition the group to a focused after-market business‚" CEO Sean Rogers said.

Rogers said the performance of the continuing operations suggested a strong future for the company.

"The results from continuing operations‚ for the period under review‚ are a satisfactory reflection of the progress that is being made in these areas‚" he said.

Headline earnings from continuing operations more than trebled to 6.58c from a restated 2c for the previous year's interim period.

Rogers said Control Instruments believed it could compete strongly going forward.

"While the automotive after-market remains highly competitive‚ the prevailing market conditions appear to be supportive of the business's strategic initiatives that are focused on realising the growth opportunities materialising in the South African and sub-Saharan Africa automotive markets‚" he said.