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[August 2003]
Ceramics Turn In Profits Rise for Cookson
Announcing half-year results, Cookson Group PLC gave brief reports on divisional performances, including Ceramics Division.
Approximately 70% of the Ceramics division's sales are indirectly linked to steel production and in the first half of 2003 steel production in the division's major markets - North America and the European Union - rose by 4% and 2% respectively, although the rate of growth in these markets slowed during the second quarter.
The division also benefitted from strong growth in steel production in emerging markets where it has built up a significant presence. As a consequence, turnover for the Ceramics division increased by 3% over the first half of 2002, but was 6% higher at constant exchange rates.
Turnover in the non-steel related sectors of the business - Foundry, Industrial Processes and Glass - collectively grew 9% at constant exchange rates, with the sound performance of the fused cast activities in the Glass sector being a feature. As a consequence of the increase in turnover in virtually all operations and of the benefits of recent actions taken to reduce the division's cost base, operating profit rose by 31% over 2002 and by 34% at constant exchange rates. Cookson added that cash flow was robust such that operating cash flow was in line with operating profit.
ENDS