UK industrial materials firm Cookson Group Plc said 30 June 2006 that its 1H 2006 results would be significantly ahead of the previous year, thanks mainly to strong demand from the electronics and ste…
UK industrial materials firm Cookson Group Plc said 30 June 2006 that its 1H 2006 results would be significantly ahead of the previous year, thanks mainly to strong demand from the electronics and steel industries. Cookson, which supplies products for making glass, iron and particularly steel, said trading in May and June 2006 was ahead of its previous expectations and the positive trading environment was expected to continue into the 2H. From July 2006, EU regulations will ban the use of lead in electronics and finance director Mike Butterworth said this, and the growth in these sectors, was benefiting Cookson. The firm has been cutting costs, reducing the workforce, and selling businesses to reduce debt built up by acquisitions in the 1990s and has been helped by an increase in world steel production, led by China. Analysts at Panmure Gordon noted that “Ceramics has outperformed the market by capturing share in the developing world. This trend is set to continue, given its investments in China and a likely move into Russia”. Butterworth said the precious metals unit was doing well in the United States and UK, which had been a “troubled market” and had broken even in the first five months of 2006 after making a loss in the same period of 2005. “With trading ahead of our expectations at both ceramics and electronics and a robust outlook, we remain confident of the financial year outlook”, analysts at Investec Securities said, retaining their “strong buy” investment rating. Cookson is expected to post its interim results on 2 August 2006.