Untitled - David Kronemyer

54 per ccnt. S'e have unique strengths among
PBIT/Turnove(%)
world manufacturers in sut:cessfully targeting both
the fittings and light sources markets. Acquisition
of the littings rnanufacturer Jdmkonst, in Sweden,
reinlbrces our position in the important Nordic
markets and strengthens our international product
range. Our bid to acquire the French group
Holophane and its subsidiary Europhane is one
example of our determination to build on THORN
Lighting"s international position and further
strengthen our move toward thc single market in
Uurope in lQo2.
The improving lrend in
THORN EMI'S reiurn on sa es
rellecls lhe success ol our
resirucluring programrne,
whrch was based on a core
stralegy execlied under slr ct
iinancia dlsciplines,a!med
firmlyal improv ng prolilab ly
as distincl lrom pure y groMh
rn lurnover achieved al lhe
expense ol adequale marg ns.
The activities of Thorn Ericsson have been
restricted to the llK telecommunications market.
This does not fit with our international gronth
strategy and we have reached agreement with our
partners, Ericsson o{ Sweden, to sell them our 5l
per cent interest. \le believe that this will also he to
the long-term benefit of Thom Ericsson, which is
dependent on Ericsson's technology in this lield.
Our principal tchnology businesses, already at
the forefront of their markets in the UK. are now
winning major overseas contracts against strong
competition. S'ith these succcsses they have
PBIT perEmployee (t)
established important international niche positions
and helped boost the overall profit of Technology
by 34 per cent last year.
\ measure of THOR\ E\'ll's grouing
international status is the increasing proportion of
our employees uorking outside the UK. One-third
of our 64,000 cmployccs nor lork in Noth and
South America, continental Europe and the
countries of the Pacific Basin. Our commitment to
the UK continues, houever, as shovn in the
Ths rnpo anl measlre
ol ernployee producl vily
shows slrong and conl nlous
progress s nce 1985/6.
Alhough lhe loial n!mber ol
ernployees lras decreased by
busrnesses we lrave ncreased
mPodanllylhe r prodlclvrly
investment of over 940 million in worldcornpetitive
manulacturing lacilities in Britain for
our Lighting, Music and Technology businesses.
Thcse are being integrated into our international
manufacturing networh in line with our global
strategy.
This pattern of global behaviour shapes our
buying policies as well. Our Rental and Retail
operations make us one of the world's biggest