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[November 2000]
Cookson Third Quarter Trading Update
The strong momentum seen in the first half of the year was maintained in the third quarter. As a result, profits for the Group in the third quarter increased at virtually the same rate as in the first half of the year.
The robust performance of the Group was primarily due to the Electronics division which enjoyed favourable market conditions similar to those of the first half of 2000. All sectors of the division performed well and the growth achieved by Polyclad and Speedline were particularly noteworthy. The acquisition of Achem, a manufacturer of multi-layer laminates with plants in Taiwan and China, which was completed in August, significantly strengthens the division's presence in the important Asia-Pacific region.
For the Ceramics division, results for all sectors of the business, other than the UK and the Glass activities, were well up on the same quarter last year. Global steel production rose by 6.5% in the third quarter compared with 10% in the first half, with the USA market showing signs of slowing. The integration of Premier Refractories remains on track and the important phase of rationalizing manufacturing facilities is now in progress.
The Precious Metals division achieved rates of growth consistent with the first half. As expected, the US Mill Products business continued to perform below last year whereas the Precision Products sector returned excellent results. During the quarter, the acquisition of the European jewellery products business of Engelhard-CLAL and that of Excel, a leading US chain manufacturer, were completed.
Overall, trading performance is expected to be satisfactory in the fourth quarter of 2000. It is therefore anticipated that the Group's results for the year will be in line with market expectations.
ENDS