15th Dec 2005 07:00
Filtrona plc15 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 theyear ending December 31st 2005 which will be announced on March 1st 2006. Filtrona demonstrated its resilience during the second half of 2005 withperformance ahead of historic growth trends despite significant increases in rawmaterial and energy costs. Plastic Technologies' sales have continued to show strong growth and profitshave grown well despite the rapid increase in raw material costs. Theperformance of our North American businesses was particularly encouraging. TheFractureCode development programme continued to yield positive results with thephased customer trials being extended from one to two manufacturing facilities.Sustained investment in marketing programmes, new products and productivityimprovements 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. Profitperformance will be marginally lower than the same period last year. Theperformance of Cigarette Filters was adversely impacted by start up operatingcosts arising from the new factory in Mexico and the transfer of technologyfollowing the closure of the filters facility in Switzerland. Within BondedFibre Components, household products demand is recovering and volumes progressedsatisfactorily at our new Ningbo facility in China. Prospects for the FibreTechnologies business remain positive and performance in 2006 will benefit fromadditional outsourced special filter volumes and lower costs due to the Swissclosure and the new facilities in China and Mexico. The second half results will include the expected demerger costs of £1m. Inaddition, higher US interest rates are expected to increase net interest costsfor the full year to £6m. Filtrona's continued investment both in developing its niche market positionsthrough service, supply chain and new product development and in productivityimprovement programmes gives the Board confidence that Filtrona will continue todevelop satisfactorily. Editor's Note:Plastic Technologies produces, sources and distributes protection and finishingproducts, self-adhesive tear tape and certain security products as well asproprietary and customised plastic extrusions and packaging items for consumerproducts.Fibre Technologies focuses on the production and supply of special filters forcigarettes and bonded fibre products such as reservoirs and wicks for writinginstruments and printers, household products and medical diagnostic devices. Enquiries: Filtrona plc FinsburyMark Harper, Chief Executive Morgan BoneSteve Dryden, Finance Director Gordon SimpsonTel: 01908 359 100 Tel: 020 7251 3801 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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