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[March 2005]
Cookson Group Preliminary 2004 Results
Turnover for Cookson Group's continuing operations of 1.698 billion was 5% higher than 2003 at reported exchange rates and 11% higher at constant rates. Operating profit of 120 million rose by 47% over 2003 at reported rates and by 60% at constant rates. This, in turn, resulted in a 2 percentage point improvement in return on sales in 2004 at reported rates to 7%.
Higher operating profit from continuing activities, the eradication of losses from discontinued businesses and lower interest costs led to a marked increase in group profit before tax, amortisation of intangibles and exceptional items to 93 million, up from 33 million in the prior year. Headline earnings per share increased three-fold to 3.3p compared to 1.1p in 2003.
In its notes on strategic initiatives, and with regard to the Ceramics division, Cookson confirmed that as part of its strategy to exit low margin commodity activities, two brickmaking businesses based in Belgium and Germany were sold in December 2004. In addition, three facilities were rationalised in the USA with production transferred to existing sites in the USA and Mexico.
Cookson said that, with regard to the current situation and outlook for the future, trading in the early weeks of 2005 suggested that the robust market conditions experienced by the Ceramics division in 2004 were continuing.
ENDS