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[March 2007]
Cookson Group Preliminary Results
Highlights of the Cookson Group preliminary results for 2006 are:• Strong results demonstrate progress in implementing Strategic Plan • Continued transformation of Group's profile, with more profitable and less cyclical mix of continuing operations • Continuing operations (now excludes Monofrax: 2006 revenue £27 million; trading profit £4.0 million): - Revenue of £1.590 billion, up 9% - Trading profit of £150 million, up 20% - Return on sales up 0.9 percentage points to 9.5% • Headline PBT and EPS up 30% and 27% respectively • Net debt of £181 million, down £112 million • Pension deficit of £155 million, down £70 million • Final dividend of 7 pence, up 40%
Commenting on the Group's results and outlook, Nick Salmon, Chief Executive,
said: "The results for 2006 demonstrate the progress achieved so far in the implementation of the Strategic Plan, through which we continue to transform the profile of the Group."Our programme of exiting commodity activities, either by disposal or closure, while improving our competitiveness in mature markets and growing strongly in emerging markets, is resulting in an intrinsically more profitable and less cyclical mix of continuing operations. End-market growth for our principal activities has been sound, resulting in good organic revenue growth. Both our net debt and the pension deficit have also reduced significantly during the year.
"Our main end-markets, global steel production and electronics, are forecast to continue to grow ahead of GDP over the medium-term. Trading over the first two months of 2007 has continued the positive trends from 2006. All three divisions have detailed plans to deliver strong organic earnings growth through 2007, 2008 and beyond. However, the recent weakening of the US dollar, through its translation impact on our sterling results, would partially reduce this growth if it were to continue. Based on these factors we expect to continue to deliver further improvement in our underlying performance."
In its segmental review, Cookson reported that the Ceramics division had experienced another outstanding year, with trading profit up 22% over 2005 driven by revenue growth in the group's high-margin flow control and fused silica product lines and good progress in its strategy to improve margins in the linings business.
Global steel production, Ceramic division's main end market, grew 9% in 2006. During the year projects were launched to build additional production facilities in China, Poland and Mexico and to close two factories in the UK and two in the US, while making further cost reductions in the global management structure. Two non-core businesses were disposed of in 2006, Ceramic Fibres and Carbon Blocks and a further two businesses in early 2007, Monofrax fused-cast refractories and a small US refractory brick business.
www.cooksongroup.co.uk
ENDS