Car parts specialist Tomkins yesterday said the weakness of the US dollar and higher costs had conspired to put pressure on profits in the last quarter.
Operating profits fell six per cent to £70 million in the three months to October 2 as the group was hit by the rising cost of raw materials, including steel and oil.
Tomkins, which carries out around 65 per cent of its business in the United States, said the currency translations reduced profits for the nine months by £22.8million, leaving profits broadly flat at £214.5 million.
Once a buckle-maker in Walsall, Tomkins, which makes products ranging from petrol caps to windscreen wipers, also spoke of a general slowdown in car production volumes and a weaker aftercare market.
The London-based firm said it had partly overcome higher raw materials by raising selling prices but that the net effect was still expected to be a hit of around £15 million over the year.
Despite these higher costs, Tomkins expected the group's underlying performance to improve in the current year.
Tomkins, which has sold a string of businesses in recent years - ranging from gun maker Smith & Wesson to food group Rank Hovis McDougall --employs around 36,000 people worldwide. Some 3,000 are in the UK with the company also heavily involved in making products for the building market.
Analyst John Nuttall at Investec Securities said the figures were "more or less bang in line with expectations".
Tomkins pointed out the car aftercare market in North America suffered "significant disruption" from the hurricanes in the south east of the US.
Chief executive James Nicol said: "Despite the recent softness in the automotive aftermarket, a slowdown in automotive production volumes and higher raw material costs, we continue to expect an improvement in the underlying performance of the group".
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