Manufacturing firm Hills Industries Ltd (ASX: HIL) reported on Tuesday that its net profit for the past 12 months leading to June 30 soared to a remarkable 322.7 percent to $40.188 million as the company's eco products division and home hardware experienced a significant recovery in 2010.

The company also said that its net profit prior to unusual items improved by 43.3 percent to $40.188 million which would result to a final distribution of 5.5 cents per share, fully franked, and gaining the full year result of 35 percent to 12.5 cents, coming from the 10 cents distributed last year.

Hills chairman Jennifer Hill-Ling revealed that she is expecting even more profit to come in the current financial year as she stressed that the company is maintaining its focus on "retaining the business improvements implemented in FY09 and FY10 and have a number of growth initiatives in place to deliver a modest improvement in profits for FY11."

Ms Hill-Ling cautioned though that the global financial markets, the sovereign debts issue in Europe, the struggling US economy and the steadying pace of the local building industry could possibly impact Hill's growth prospects in 2011.

She is happy though that the company's home, hardware and eco divisions delivered the goods and "recorded a significant turnaround from its FY09 results while business initiatives successfully implemented during the year included the lowering of our cost base, as well as our decision to exit less profitable businesses and products."

Ms Hill-Ling said that the division achieved an operating profit before interest and tax of $10.235 million in fiscal 2010, prior to a loss of $3.1 million in the year before, while it posted an operating profit sales percentage of 5.8 percent in the same period as against the negative 1.5 percent it posted before.

She attributed the company's improved earnings contribution to a shift on its strategic direction, which was implemented following the division's dismal annual sales revenue from the previous year.

Seemingly riding on the news of better profit prospects for 2010, Hill's stocks gained considerable traction in the shares market and as of 1203 AEST on Tuesday, company shares were trading at $2.42, improving by 25 cents or 11.52 percent from previous trading day.