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[November 2008]
Morgan Crucible Interim Management Statement
In its recent interim statement, The Morgan Crucible Company plc said that the group had continued to show positive year on year momentum in revenues and operating profits in the second half of 2008 on a constant currency basis.
At reported foreign exchange rates, full year revenue growth for 2008 is expected to be over 15% helped by a strengthening US dollar. Constant currency organic growth is expected to be around 5%.
The order book at the end of October remained healthy, at levels above the same period last year, and with close to 4 months visibility.
Commenting on the year to date performance and outlook for the full year, Mark Robertshaw, Chief Executive Officer, said: “I am pleased with the progress we have continued to make in the second half of this year in the face of increasing macro economic headwinds. Unprecedented volatility in the global economy clearly makes it much more difficult to forecast demand accurately. However, our ongoing strategy of moving towards less economically cyclical markets has successfully reduced the Group’s exposure to sectors which are coming under particular pressure such as Automotive, Consumer Goods and Semiconductors.
“Demand in markets such as Defence and Medical has remained strong which to date has offset the softening we have seen in some sectors which are more linked in to the general industrial cycle. In those markets where we have seen weakening demand we have taken decisive actions to reduce the cost base including selective headcount reductions. Going forward, we remain watchful and prepared to react swiftly to any other signs of slowdowns in our end markets as they emerge.
“Our goal as a Group remains mid teen operating profit margins in good times and double digit in bad times. The general economic environment is clearly more difficult currently than it has been for many years but I remain confident that Morgan Crucible is a higher quality, more resilient business than in the past. As we look to the future, we are committed to demonstrating this quality and resilience over the coming months.”
ENDS