Trading Update and Disposals
Cookson Group PLC
19 December 2006
PRE-CLOSE PERIOD TRADING UPDATE - IN LINE WITH EXPECTATIONS
ANNOUNCEMENT OF DISPOSAL OF TWO NON-CORE BUSINESSES
Trading Update
Cookson Group plc ('Cookson' or 'the Group'), a leading materials science
company, issues its pre-close trading update ahead of its 2006 full year results
to be announced on 13 March 2007.
End-market trends and the Group's overall trading performance have remained in
line with the expectations set out in the Trading and Strategic Plan Updates
announcement made on 7 November 2006.
Disposals
Monofrax
With effect from 18 December, Cookson entered into an agreement to sell
Monofrax, a fused-cast refractories business which forms a separate part of the
Ceramics division, to RHI AG of Austria for US$45 million (£23 million*).
Completion of the transaction, which is conditional on satisfactory approval of
the relevant antitrust authorities, is expected during the first quarter of
2007. The purchase price will be satisfied on completion by an assumption by
the acquirer of pension, retirement medical and other liabilities, estimated at
US$10 million (£5 million*), with the balance satisfied in cash, estimated at
US$35 million (£18 million*).
Monofrax is based in New York State, USA and manufactures high density ceramic
blocks used primarily to line glass-making furnaces in order to contain molten
glass. For the year ended 31 December 2005, Monofrax had revenue of £25 million
and a trading profit of £3 million.
PVC Cements
On 18 December, Cookson sold its Florida, USA based PVC Cements business, which
forms part of the Assembly Materials sector of the Electronics division, to a
group of private investors with holdings in packaging and speciality chemical
companies for a cash consideration of US$3 million (£2 million*). The cements
are used primarily as a jointing product for PVC piping.
For the year ended 31 December 2005, PVC Cements had revenue of £5 million and
reported a breakeven trading performance.
Commenting on these disposals, Nick Salmon, Chief Executive of Cookson said:
'Monofrax and PVC Cements are non-core businesses where we have relatively small
market share positions and their disposal is part of our strategy to focus our
portfolio on businesses where we have leading market positions.'
For further information please contact
Shareholder/analyst enquiries: Cookson Group plc
Isabel Luetgendorf, Investor Relations Manager Tel: +44 (0)20 7822 0000
Media enquiries:
Hogarth Partnership
John Olsen Tel: +44 (0)20 7357 9477
Notes:
* translated at an exchange rate of US$1.95/£1
About Cookson Group plc
Cookson Group plc is a leading materials science company operating on a
worldwide basis in Ceramics, Electronics and Precious Metals markets.
The Ceramics division is the world leader in the supply of advanced flow control
refractory products and systems to the global steel industry and a leading
supplier of specialist ceramic products to the glass and foundry industries. It
is also a regional leader in the US, UK and Australia in the supply and
installation of monolithic refractory linings.
The Electronics division is a leading supplier of advanced surface treatment and
plating chemicals and assembly materials to the automotive, construction and
electronics markets.
The Precious Metals division is a leading supplier of fabricated precious metals
(gold, silver, platinum, etc.) to the jewellery industry in the US, the UK,
France and Spain. Products include alloy materials, semi-finished jewellery
components and finished jewellery.
Forward Looking Statements
This announcement contains certain forward looking statements which may include
reference to one or more of the following: the Group's financial condition,
results of operations, cash flows, dividends, financing plans, business
strategies, operating efficiencies or synergies, budgets, capital and other
expenditures, competitive positions, growth opportunities for existing products,
plans and objectives of management and other matters. Statements in this
document that are not historical facts are hereby identified as 'forward looking
statements'. Such forward looking statements, including, without limitation,
those relating to the future business prospects, revenues, working capital,
liquidity, capital needs, interest costs and income, in each case relating to
Cookson, wherever they occur in this document, are necessarily based on
assumptions reflecting the views of Cookson and involve a number of known and
unknown risks, uncertainties and other factors that could cause actual results,
performance or achievements to differ materially from those expressed or implied
by the forward looking statements. Such forward looking statements should,
therefore, be considered in light of various important factors. Important
factors that could cause actual results to differ materially from estimates or
projections contained in the forward looking statements include without
limitation: economic and business cycles; the terms and conditions of Cookson's
financing arrangements; foreign currency rate fluctuations; competition in
Cookson's principal markets; acquisitions or disposals of businesses or assets;
and trends in Cookson's principal industries.
The foregoing list of important factors is not exhaustive. When relying on
forward looking statements, careful consideration should be given to the
foregoing factors and other uncertainties and events, as well as factors
described in documents the Company files with the UK regulator from time to time
including its annual reports and accounts.
Such forward looking statements speak only as of the date on which they are
made. Except as required by the Rules of the UK Listing Authority and the London
Stock Exchange and applicable law, Cookson undertakes no obligation to update
publicly or revise any forward looking statements, whether as a result of new
information, future events or otherwise. In light of these risks, uncertainties
and assumptions, the forward looking events discussed in this announcement might
not occur.
This information is provided by RNS
The company news service from the London Stock Exchange
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