Morgan Crucible enjoys encouraging start to 2010

April 23rd, 2010
Specialist materials group Morgan Crucible said it has had an encouraging start to 2010, with trading conditions improving and with steadily increasing levels of order intake since the fourth quarter of 2009.
Demand in Asia is robust, improving in most end markets in North America and stable in Europe.
Operating profits and margins are above the comparable period for 2009 and in line with management expectations, benefiting from the positive impact of cost savings made in 2009.
Mark Robertshaw, CEO, said: 'Whilst recognising that it is still early in the year, I am encouraged by the Group's trading so far in 2010. There are signs of end market demand improving in Asia and in North America with Europe showing stability. With the benefits of the cost reductions made last year coming through, we believe that Morgan Crucible is well placed to capitalise on market opportunities going forward.'
In the first three months of 2010, the Carbon businesses, excluding NP Aerospace, have achieved good revenue increases compared with both the comparative period in 2009 and in particular against the last three months of 2009. The strongest revenue growth has been in China and, to a lesser extent, in the Americas. Europe is showing some revenue improvement but not to the same level as other regions.
As expected and previously advised, whilst revenues in NP Aerospace are below those achieved in 2009, they remain in line wit expectations to deliver full year revenues of c 120m.
The opening quarter of 2010 has seen the majority of the Technical Ceramics division's markets continue to improve with order books increasing steadily.
Since the beginning of the year, overall market conditions have improved for the Thermal Ceramics division though the situation varies both by region and end market.
Revenues in the Molten Metal Systems division have continued to improve with particularly good growth in Asia. Margins have benefited from the reduction in operating costs implemented in the first half of 2009.
Morgan said there was no material change in the financial position of the Group during the first quarter of 2010 except for the increase in its equity stake in NP Aerospace from 60% to 70% for a consideration of 27.2m to be paid in two tranches; 14.8m on 1st April 2010 and the balance in July 2010.