Press Releases
10 Nov 2009
Interim Management Statement
Cookson Group plc (“Cookson” or “the Group”), a leading materials science company, releases the following Interim Management Statement regarding current trading, its financial position and outlook. This statement covers the period from 1 July 2009 to 9 November 2009.
Overview
In our 2009 Half Year Financial Report (4 August) we commented that we had seen progressively improving trends in electronics end-markets since March and some signs of recovery in steel production end-markets since May, but that foundry end-markets remained very weak. These improving overall trends continued through the third quarter, which also benefitted from the normal trading seasonality of our Electronics and Precious Metals divisions and a slight pick-up in foundry markets towards the end of the quarter.
As a result, Group revenue of £498 million in the third quarter was 9% higher than the prior quarter at constant exchange rates (6% higher at reported exchange rates), although still 26% below the equivalent quarter in 2008 (18% lower at reported exchange rates). Trading profit improved markedly in the third quarter reflecting the strong profit drop-through from the additional revenue and the incremental cost-reduction programme savings.
These improving overall end-market and trading performance trends have continued into the fourth quarter, although we anticipate the normal reduction in activity in December due to some customer production shutdowns. The Board now expects trading profit for full year 2009 to be around the upper end of the range of current analysts’ forecasts (see note 1 below). We are therefore confident that we will be in full compliance with the financial covenants contained within our debt facilities as at 31 December 2009.
Download the full press release (PDF)
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