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[December 2004]
Morgan Crucible Trading Update
Morgan Crucible Company PLC has issued a trading update ahead of its full year results for the year ending 4 January 2005, scheduled for 22 February 2005.
On Insulating Ceramics, it said that sales of Thermal Ceramics year on year have improved slightly on a constant currency basis through organic growth and the continuing importance, due to health and safety regulations, of the Superwool range of bio-soluble products around the world. Markets have remained flat overall with the smaller Asian markets showing strong growth. North American markets have been steady, while in Europe stronger automotive and building product sales have been offset by weaker demand in other segments. The whole business has benefitted from the results of the restructuring actions taken over the past two years.
Overall trading conditions for the Crucibles division improved slightly over 2003. Strong sales growth was achieved in North America, although this was undermined by the weakness of the US dollar. Demand in Asia continued to strengthen with sales to China accelerating. In Europe, however, the markets remained flat and showed no real signs of recovery. The increasing use of aluminium castings in motor vehicles continued to benefit crucible sales.
The first half of 2004 saw Technical Ceramics enjoying relatively good trading conditions in the aerospace, medical and semiconductor markets. In the second half of the year there has been some softening of demand in the USA with delayed orders as some customers, particularly in the medical and semiconductor sectors, looked to reduce stock levels. Overall, the European market has remained steady. The Asian markets, whilst much smaller, have continued to show significant growth. Actions to reduce costs remain on plan and are expected to contribute significantly to the operating result for 2004.
ENDS