LONDON (ShareCast) - Car parts maker and building materials group Tomkins revealed a slump in half year profit after it was hit by a $175m impairment charge related to the value of its car and housing divisions in the US.

Tomkins expects trading in these units to remain challenging, it said in today's company statement. Emerging markets in Eastern Europe, Asia and South America are expected to be strong in the second half of the year.

Profit before tax fell to $61.6m in the first half from $293.6m the year before. Sales were little changed at $2.9bn compared with just under $3bn the year before. Adjusted operating profit fell to $243m from $267.8m previously.

Chairman David Newlands commented, "The group continued to face challenging macro economic conditions in the first half of 2008. Two of our US end markets, automotive original equipment and residential housing, have weakened further since our last update."

However the group remains confident of its strategy of expanding in emerging markets…will continue to provide resilience in the second half of 2008 and growth opportunities in the future.

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