4th Jun 2009 07:00
4 June 2009
LOW & BONAR PLC
HALF YEAR TRADING UPDATE
Low & Bonar PLC ("the Group"), the international performance materials group, reports that the improving trends referred to in the Interim Management Statement of 17 April 2009 have continued for the remainder of the half year to 31 May 2009. Accordingly overall performance for the second quarter has been in line with the Board's expectations.
Although sales have remained significantly lower than in 2008, with February representing the low point, the Group has seen an improvement over the last three months. The pattern of greater stability in sales is being experienced in the majority of our end-markets, with civil engineering, carpet tiles and selected building products performing relatively strongly, although sales into the automotive and truck markets (representing only some 14% of sales in 2008) have continued at depressed levels. Geographically, the Middle East and Asia remain areas of comparative sales strength.
The Group continues to benefit from lower raw material costs which in aggregate have remained broadly unchanged throughout the second quarter although future trends remain difficult to predict. Tight cost controls remain in place, with the Group having reduced its workforce by 12% compared to a year ago. The Group has also been able to flex its direct labour to a significant degree, particularly in Belgium and Germany, to reflect movements in demand levels. Equally rigorous cash management controls remain in place together with continued tight control of capital expenditure.
The Board continues to believe that the strategy, end-market diversity and market positioning of the Group will create further opportunities for market share gain in the current demanding environment.
The Group expects to announce its interim results for the six months ended 31 May 2009 on 13 July 2009.
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For further information, please contact: |
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Low & Bonar PLC |
+44 (0)20 7535 3180 |
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Paul Forman, Chief Executive |
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Kevin Higginson, Finance Director |
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Hogarth Partnership Limited |
+44 (0)20 7357 9477 |
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Andrew Jaques / Rachel Hirst / Ian Payne |
Forward looking statements
This announcement includes statements that are, or may be deemed to be, "forward looking statements". These forward looking statements can be identified by the use of forward looking terminology, including, but not limited to, the terms "believes", "estimates", "anticipates", "expects", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include matters that are not historical facts.
By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition and liquidity may differ materially from the impression created by the forward looking statements contained in this announcement. In addition, even if the results of operations, financial condition, and liquidity are consistent with the forward looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods. Important factors that could cause these differences include, but are not limited to: changes in the competitive framework in which the Group operates and its ability to retain market share; the Group's ability to generate growth or profitable growth; the Group's ability to generate sufficient cash to service its debt; the Group's ability to control its capital expenditure and other costs; significant changes in exchange rates, interest rates and tax rates; significant technological and market changes; future business combinations or dispositions; and general local and global economic, political, business, and market conditions. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this announcement may not occur.
Other than in accordance with their legal or regulatory obligations, the Group does not undertake any obligation to update or revise publicly any forward looking statement, whether as a result of new information, future events or otherwise.
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