Hills Industries Profit Soars

Hills Industries Profit Soars
Australian manufacturer Hills Industries (ASX:HIL), which manufactures clotheslines, antennas and security equipment as well as the famous Hills hoist, have announced that it has quadrupled its profit to $40.2 million. Shares in Hills Industries soared by 11 percent on the news by 24 cents to $2.41.

Hills Industries Dividends Net Profit

Hills Industries have announced a final dividend of a fully franked 5.5 cents, an increase of 2 cents. EPS (Earnings per share) is 16.7 cents. Net profit increased by 322.8 percent to $40.2 million. Hills Chairman Jennifer Hill-Ling said: "We remain focused on retaining the business improvements implemented in financial year 2009 and 2010 and have a number of growth initiatives in place to deliver a modest improvement in profits for financial year 2011." Hills have reduced its gearing to 10.1 percent, with net debt at $50.2m compared to $154.4m the previous year.

Reasons for the Soaring Profit by Hills

Hills Industries have seen its profit soar due to restructuring and cost-cutting measures undertaken by the company. Managing director, Graham Twartz has said that "We undertook a whole lot of restructuring initiatives; we got out of some businesses that weren't performing well. We really focused the business on where we could make money.'' The company has decided to discontinue unprofitable product ranges.