Filtrona plc
15 December 2005
PRE-CLOSE TRADING STATEMENT
(To be issued on Thursday 15 December)
Filtrona today issues a pre-close trading statement ahead of its results for the
year ending December 31st 2005 which will be announced on March 1st 2006.
Filtrona demonstrated its resilience during the second half of 2005 with
performance ahead of historic growth trends despite significant increases in raw
material and energy costs.
Plastic Technologies' sales have continued to show strong growth and profits
have grown well despite the rapid increase in raw material costs. The
performance of our North American businesses was particularly encouraging. The
FractureCode development programme continued to yield positive results with the
phased customer trials being extended from one to two manufacturing facilities.
Sustained investment in marketing programmes, new products and productivity
improvements continue to drive growth in this business segment.
Fibre Technologies has regained sales momentum in the second half as expected,
with volume growth at our new filters plant in Monterrey, Mexico. Profit
performance will be marginally lower than the same period last year. The
performance of Cigarette Filters was adversely impacted by start up operating
costs arising from the new factory in Mexico and the transfer of technology
following the closure of the filters facility in Switzerland. Within Bonded
Fibre Components, household products demand is recovering and volumes progressed
satisfactorily at our new Ningbo facility in China. Prospects for the Fibre
Technologies business remain positive and performance in 2006 will benefit from
additional outsourced special filter volumes and lower costs due to the Swiss
closure and the new facilities in China and Mexico.
The second half results will include the expected demerger costs of £1m. In
addition, higher US interest rates are expected to increase net interest costs
for the full year to £6m.
Filtrona's continued investment both in developing its niche market positions
through service, supply chain and new product development and in productivity
improvement programmes gives the Board confidence that Filtrona will continue to
develop satisfactorily.
Editor's Note:
Plastic Technologies produces, sources and distributes protection and finishing
products, self-adhesive tear tape and certain security products as well as
proprietary and customised plastic extrusions and packaging items for consumer
products.
Fibre Technologies focuses on the production and supply of special filters for
cigarettes and bonded fibre products such as reservoirs and wicks for writing
instruments and printers, household products and medical diagnostic devices.
Enquiries:
Filtrona plc Finsbury
Mark Harper, Chief Executive Morgan Bone
Steve Dryden, Finance Director Gordon Simpson
Tel: 01908 359 100 Tel: 020 7251 3801
This information is provided by RNS
The company news service from the London Stock Exchange
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