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[August 2008]
Morgan Crucible Statement on the Half Year Results
Highlights for the half year (to 4 July 2008) for Morgan Crucible were as follows:• Good results at top end of expectations
• The first half of 2008 has seen reported revenue increase by 15.4% compared to last year. On an organic (excluding the effect of the Carpenter acquisition) and constant currency basis revenue growth was 4.9%
• Group underlying operating profit margin - defined as operating profit of £45.1 million (2007: £39.1 million) before amortisation of £1.3 million (2007: £0.8 million) - improved to 11.6% compared to 11.5% in the first half last year and 11.4% for the full year 2007
• Underlying EPS improved by 11.9% to 11.3 pence (2007: 10.1 pence)
• Interim dividend increased by 11.1% to 2.50 pence per share (2007: 2.25 pence)
• The technical ceramics businesses acquired earlier this year from Carpenter Technology Corporation have performed well and both revenues and profit contribution are ahead of expectations
• The Group’s balance sheet remains robust. In March of this year the UK defined benefit pension scheme risk was substantially reduced following the UK pensioner buy-in.Commenting on the results, CEO Mark Robertshaw said: “The Group has traded well in the first half of 2008. Current order books are healthy at levels well above the same time last year on a like for like basis. The Carpenter businesses acquired in March 2008 and our 2007 investment in NP Aerospace are each performing well. Both are ahead of our revenue and profit expectations and have strong order books. We expect the Group to deliver further margin progression in the second half of the year and our goal remains mid-teen underlying operating profit margins in good times and double digit margins in bad times. Our strong market positions and healthy order book combined with a robust balance sheet enable us to look forward with confidence”.
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ENDS