CAR parts group LucasVarity, which employs more than 1,000 in East Lancashire, has warned of mixed trading times ahead despite announcing a 15 per cent jump in profits.

The firm, which this week announced 120 job losses at its Lucas Body Systems site in Burnley, said slowdowns in the European car industry and uncertainty in Asia were causing uncertainty.

Pre-tax profits at the firm, which also has a wiring site in Accrington, were £533 million for the year to January 31, compared with £316 million the year before. Operating profits were up 15 per cent.

Turnover was £4.31 billion, compared with £4.68 billion last time. Overall profit figures were flattered by £64 million of one-off gains - mostly from the £235 million sale of its heavy vehicle braking business and the £803 million disposal of its VarityPerkins operation.

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