LUCAS Industries, one of East Lancashire's biggest employers, has reported a 35 per cent profits leap to £61 million. And the firm, which employs more than 2,000 at its sites in Burnley and Accrington, was confident of prospects for the coming six months.

The results for the half-year to January show sales increased by nine per cent to £1,469 million.

Chief executive George Simpson said : "Lucas maintained the momentum of its recovery with solid growth in sales and profits, in spite of weaker than expected automotive demand over the last six months.

"With economic conditions likely to pick up gradually in 1996, I expect progress to be sustained in the second half of our financial year."

The group reported a difficult market for car parts with vehicle production down in the half-year by three per cent in Europe, though the picture now looked brighter.

Many manufacturers had reduced stocks to match lower demand expectations.

Despite the difficult market, car parts revenues grew by 13 per cent to £1.2 billion, helped by an American acquisition in 1994 and stronger continental European exchange rates.

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