LUCAS SEES CONTINUED GROWTH IN SECOND HALF

  Lucas Industries Plc &lt;LUCS.L> said its
  underlying performance would continue to improve in the second
  half but profits would be restrained by low activity in U.K.
  Commercial vehicle and tractor markets as well as in North
  American electronics.
      The company earlier reported a two mln stg rise in pretax
  profit to 40 mln in the six months to end-January. The figure
  was some five mln below forecasts and Lucas shares dropped
  sharply to 557.5p at 1130 GMT from last night's close of 590p.
      It said it would continue with plans for all its activities
  to be internationally competitive and profitable.
      Costs of restructuring, reorganisation, employee training
  and retraining, particularly in the UK automotive businesses,
  together with high research and development spending would
  affect profits in the short term.
      But Lucas said it was exploiting growth opportunities in
  automotive markets, especially in vehicle breaking and engine
  management systems. Recent acquisitions in North America had
  strengthened Lucas Aerospace and Lucas Industrial systems.
  

