 |
 |
||||||
[November 2004]
Cookson Third Quarter Trading Update
Cookson Group sales for continuing operations in the third quarter of 2004 were up 17% while, before amortisation of intangible assets and exceptional items, operating profit leapt 93%. Group profit before tax (on the same basis as operating profit) improved significantly on the third quarter of 2003, rising from £5 million to £22 million. The year-to-date group profit stands at £64 million, compared with £10 million for the first nine months of 2003.
The Ceramic division's sales of £186 million in Q3 2004 were 17% higher than the same quarter last year at constant exchange rates and up 9% at reported exchange rates. In the third quarter, steel production rose by 11% and 8% respectively in the division's main markets of NAFTA and the EU.
In China - the world's largest steel producing country - output grew by 22% and was also up strongly in other emerging markets such as South America and Eastern Europe, where the division has a strong presence. Consequently, the Iron and Steel sector, which accounts for approximately two-thirds of the division's turnover, recorded a year-on-year increase in sales of 18% in Q3.
In addition, sales were boosted by a number of large relining projects. Trading conditions in the Foundry, Industrial Processes and Glass sectors were also positive and sales for these businesses collectively rose by 15%.
The increase in sales resulted in the Ceramic division's operating profit rising to £15 million in the third quarter, 44% higher at constant exchange rates than the same period last year and up 30% at reported exchange rates.
ENDS