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'Bright future' as Cray doubles interim earnings

Tom Stevenson
Friday 15 January 1993 00:02 GMT
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CRAY Electronics, the computer group rescued from likely receivership in 1989, took another step to recovery yesterday. The company announced more than doubled earnings from trading in the six months to the end of October 1992, writes Tom Stevenson.

Announcing his decision to stand down as executive chairman, Sir Peter Michael said: 'The outlook for Cray has been completely transformed. The company has a very bright future.'

New accounting standards meant profits from disposals were included in a reported leap in earnings from 0.47p to 10.3p. Doubled sales of pounds 81.9m were given a pounds 30m boost by the acquisition last July of the information technology businesses of the company's rival, Dowty. There is an interim dividend of 0.5p (nil last year).

Cray paid the engineering group TI pounds 50m for the Dowty companies. In a full year they are expected to provide sales of about pounds 170m, representing nearly three quarters of the enlarged group.

Sir Peter said he was confident that margins of about 4 per cent at Dowty could be brought up to the 9 per cent achieved by the rest of Cray within two years.

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