Regular Trading Update to be Published

Burmah Castrol PLC 1 December 1999 TRADING UPDATE As stated in its Interim Announcement on 8 September 1999, Burmah Castrol plc intends to publish an annual trading update, on a regular basis, approximately two months ahead of its full year announcement. Overview Tim Stevenson, Chief Executive, comments: 'We have continued to make strong progress throughout the second half of 1999, building on the powerful start we made to the year. The trading outlook remains good, particularly in Asia Pacific. We are actively implementing our plans to drive the top line, for example through partnership deals such as that with BMW, whilst significantly reducing costs, the benefits of which will start to be seen in 2000.' Business Results Castrol Consumer has continued to perform strongly and to grow market share; volumes to end October were some three per cent ahead of last year. Margins have been maintained at a high level despite increasing advertising, marketing and technology investment. Where raw material costs are rising, Castrol Consumer is confident that these will be passed on. The strong recovery in Asia Pacific has been maintained and North America has had an excellent second half. Europe is making good progress despite strong competition. Castrol Industrial has continued to experience difficult market conditions in Europe and North America, but East Asia and India are growing strongly. Margin improvement programmes in Europe and North America are well under way, and new CMS contracts continue to be won which will underpin growth in future years. Foseco Foundry has maintained its margins despite difficult conditions in the steel foundry segments in Europe and North America, and there are some signs that these markets are improving. Asia Pacific is finishing the year on a strong note. Construction has had an excellent year, with a strong recovery in Asia Pacific and a strengthening European performance. Printing continues to achieve excellent margins despite the strength of sterling and the absence of a significant improvement in the key graphics segment. There is some improvement, however, in the US and mainland European industrial printing markets. Burmah Castrol's other businesses are performing up to expectations except for Ceramic Welding, which remains in loss. Y2K The Board has regularly reviewed the Group's progress on addressing the Year 2000 problem, and all units world-wide have now achieved 'Year 2000' readiness. Year 2000 programmes have addressed business systems as well as processes related to business partners. Detailed 'Rollover' plans are being implemented to ensure a successful transition and contingency plans are in place to ensure the company continues to be as fully protected as possible against any problems that might arise. Strategic Developments Some £59 million has been invested to date this year in acquisitions, whilst disposals have raised around £37 million. Burmah Castrol is pursuing further opportunities to invest in its core businesses, penetrate new markets and dispose of businesses to which further value cannot be added. For further information, please contact: James Alexander, Corporate Affairs Director, 01793 452006 Burmah Castrol plc

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