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[May 2002]
First Quarter Trading Update from Cookson
General economic and trading conditions for Cookson Group's major markets in the quarter ended 31 March 2002 remained broadly in line with those experienced during the fourth quarter of 2001. Although all three divisions experienced a slow start to the year, activity levels increased as the quarter progressed.Conditions began to improve in the Ceramics division's major markets towards the end of the first quarter. USA steel production, although lower than the first quarter of 2001, was well up on the fourth quarter of 2001 and the introduction of import tariffs by the US Government should support this improving trend in the near-term.
Although year-on-year production declined in some of Europe's biggest steelmaking regions, in many countries an improvement over the previous two months was recorded in March 2002. Steel volumes in Asia-Pacific were considerably stronger than last year throughout the quarter.
The Ceramics division's sales of £165 million were 7% below the fourth quarter of 2001, due primarily to the slow start to the year. The improved mix arising from increased sales in the USA, together with reduced cost base, resulted in an improvement in this division's profitability.
Overall group sales for Q1 2002 were £436 million - 6% down on Q4 2001.
ENDS