14th Mar 2007 07:01
Hampson Industries PLC14 March 2007 Pre-close Trading Update Hampson Industries PLC ("Hampson" or "the Group"), the international precisionengineering group, today announces an update on current trading prior to itsfinancial year end on 31 March 2007. The Group's preliminary results will beannounced on 6 June 2007. Trading Profit* for the year ending 31 March 2007 is expected to be ahead ofmarket expectations, despite a substantial adverse movement in the US dollar/sterling exchange rate during the course of the year. Aerospace As anticipated, global aerospace markets have remained buoyant throughout thefinancial year and the outlook is expected to remain positive for theforeseeable future as a result of the current order books and rising productionrates at Boeing and Airbus. The potential impact of delays experienced at Eclipse Aviation in achievingproduction certification for the Eclipse 500 VLJ, which was highlighted at thebeginning of February, has now been mitigated through careful control of costsand a well coordinated working relationship with our customer. Better-than-expected progress has continued to be made during the second half inimproving operational performance at the larger facilities of the AerospaceComponents & Structures division in the UK. Margins in this division willtherefore be ahead of those achieved in the first half and considerably higherthan those realised over the same period last year. The acquisition of Composites Horizons Inc., completed on 5 January 2007, hasbeen fully integrated to plan within the Group's Transparencies, Composites &Plastics division and is performing in line with our expectations. Automotive Demand for automotive turbochargers remains at healthy levels, with increasingopportunities for growth from our new facility in Bangalore becoming evident.For the year ending 31 March 2007, overall profitability in this division willbe lower than last year as a result of net start-up costs in India and costsassociated with the introduction of many new parts for new programmes thatlaunch in 2007/08, as indicated at the half year stage. Outlook Looking ahead to 2007/08, with current order books at record levels the Boardexpects to see increased volumes in both aerospace and automotive turbochargermarkets, leading to another year of growth consistent with our objective ofyear-on-year real growth. \* Trading Profit is defined as Operating Profit before restructuring andrationalisation costs, impairment charges, amortisation of intangible assets onacquisition and changes in the fair value of financial instruments. Further information: Kim Ward, Chief Executive +44 (0)1384 472941Howard Kimberley, Finance Director +44 (0) 1384 472946Jonathan Gollins/Marylene Guernier, M:Delta +44 (0)207 153 1269 Notes to Editors : Hampson Industries PLC is listed on the main market of the London StockExchange. The Group's operations are structured into four segments, operatingfrom 16 manufacturing facilities spanning three continents. Through itsinternational operations, the Group provides leading-edge, fully-integratedengineering and manufacturing solutions for: • Aero structural components and assemblies• Performance-critical components for gas turbine engines• Close tolerance components & rotating assemblies for turbochargers, fuel delivery & hydraulic applications• Precision tooling systems for large, composite aero structures• Specialist engineering & industrial components Approximately 80% of the Group's sales are derived from its aerospaceactivities, the balance from the specialist automotive and industrial markets. Hampson has a clear growth strategy based on both organic and externalinvestment. Over the last two years, the group has completed four acquisitionsin the USA (Texstars Inc, Coast Composites Inc, Lamsco West Inc. and CompositesHorizons Inc) as well as invested $20m in a new purpose-built aerospace assemblyand high speed machining cell to support the revolutionary new Eclipse 500 VeryLight Jet programme, to which it is one of the major supply partners(www.eclipseaviation.com). Recent investment in a new manufacturing facility in Bangalore is a core elementof the Group's growth strategy and marks Hampson's commitment to developing acentre of manufacturing expertise on the Asian continent. The Hampson group employs over 1,800 people worldwide. For more information on Hampson: www.hampsongroup.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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