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[October 2001]
Cookson Q3 Trading Update
Cookson Group sales in the third quarter 2001 were £477 million - down by 28% on the same period in 2000 and by 14% for the nine months ended 30 September.
As in the first half, weakness persisted in the US and UK steel industries, both of which are major end-markets for the Ceramics division's products and services. Steel production in the third quarter in these two areas was lower than that of the second quarter and down some 12% compared with last year.
There were also signs of deterioration in some northern European steel making countries, although production in southern Europe remained at or above last year's levels. In the rest of the world, steel production levels help up reasonably well and the performance of the division's Steel sector in these regions was less affected.
In the division's Foundry & Industrial Products sector, activity weakened in line with that of the steel industry, to which demand for its products is indirectly linked. For the division's Glass sector, sales in the quarter were in line with last year.
In total, the Ceramics division's sales in the third quarter were £173 million - 10% lower than last year - and trading profits for the three months ended 30 September were approximately £8 million.
The Ceramics division will close six plants in addition to the six previously announced as part of the Premier Refractories integration programme and there will be a reduction in headcount of 670 people. The primary focus of these actions is to realign the US and UK activities of the division with the current and near-term reductions in steelmaking capacity in these regions.
Together with the 360 headcount reduction associated with Premier Refractories integration programme, this will result in a total decrease of 1,030 people or 12% since the beginning of the year.
ENDS