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[May 2008]
Cookson Group Interim Management Statement
Cookson Group plc, the leading materials science company, has released an Interim Management Statement regarding current trading, financial position and the outlook for the financial year. This statement covers the period from 1 January 2008 to 14 May 2008.
Nick Salmon, Chief Executive, commented: “Cookson’s businesses have continued to trade in line with our expectations. The enlarged Ceramics division’s end-markets remain robust and the division continues to deliver a significantly improved performance compared to 2007, with the newly-acquired Foseco business performing ahead of our original expectations.
“The Electronics division is maintaining its performance at 2007 levels in slightly softer end-markets. The Precious Metals division remains profitable despite the difficult retail environment in the United States. The Group is also benefitting from the positive currency translation impact of sterling’s recent weakness on reported revenue and profits.
“We continue to anticipate a strong performance in 2008, driven by the enlarged Ceramics division.”
Expanding on the situation in Ceramics, Cookson reported that global steel production, the main end market for the Ceramics division, grew 5.6% in the first quarter of 2008. As expected, steel production grew particularly strongly in NAFTA as imports from China reduced. Solar Crucible™ demand continues to grow rapidly and the new facility in the Czech Republic started production on schedule in March.
Organic revenue growth for the division year to date is running slightly ahead of the growth in world-wide steel production. Operating margins in the Linings business have continued to improve. Overall, the positive trends from last year continue and the division has performed strongly.
The acquisition of Foseco plc was completed on 4 April 2008. Following a strong performance in 2007, Foseco’s results for the first quarter of 2008 were ahead of Cookson’s expectations when the transaction was announced in October 2007 and this momentum is continuing in the post-acquisition period. The process of integrating Foseco within the Ceramics division is proceeding well.
www.cooksongroup.co.uk
ENDS