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[January 2005]
Trading Update from Cookson
Cookson Group said that the performance for the group in the fourth quarter of 2004 was consistent with the indication given in the third quarter trading update issued on 5 November 2004. As a result, profit before tax and exceptional items for the year is expected to be in line with current market forecasts and significantly higher than 2003.
Group sales for Q4 2004 were up on both the preceding quarter and the same quarter in 2003 and operating profit also improved over the same periods. Cash generation was strongly positive in Q4 and, as a result, net borrowings at the end of 2004 were lower than at 31 December 2003.
As far as the Ceramics division was concerned, Cookson said that sales and operating profits in Q4 improved strongly over both the preceding quarter and Q4 2003. Global steel production, the division's main market, remained robust as did the performance of the division's Iron & Steel sector and, collectively, the non-steel sectors of the division also performed soundly.
In December 2004, the Ceramics division sold two underperfoming businesses which make silica and zircon bricks used in glass melting furnaces with plants in Belgium and Germany. These businesses had sales of €21 million in 2004. The cash consideration received of €1 million resulted in a loss on disposal of €33 million, including a write-off of goodwill of €8 million.
ENDS