4th Dec 2007 07:01
Filtrona plc04 December 2007 FILTRONA PLC TRADING UPDATE ON PROGRESS IN 2007 Filtrona today issues a pre-close trading statement ahead of its results for theyear ending 31 December 2007, which will be announced on 28 February 2008. Filtrona anticipates good continued performance in 2007 in line withmanagement's expectations, despite the continued weakness of the US Dollar whichis expected to reduce reported revenue by c. £25m and reported operating profitby c. £3m. Plastic Technologies--------------------Plastic Technologies has again progressed satisfactorily with good underlyingtrading and the benefit of the Duraco acquisition being partly offset by tradingconditions within the North American Plastic Profile and Sheet business, whichremain challenging, and also by the revenue investments in FractureCode. The Protection and Finishing Products division has expanded its internationaldistribution infrastructure further and the new location in Ningbo, Chinacommenced trading this month. The Duraco business has been integratedsuccessfully and is performing in accord with the pre-acquisition plan andperformance of the MSI oil country tubular goods thread protector business hasimproved in the second half after a relatively soft second quarter. In Coatedand Security Products, the tear tape and security products businesses havecontinued to perform well. The European Plastic Profile and Sheet business hasprogressed well but, as previously indicated, weak demand has persisted in theNorth American Plastic Profile and Sheet business and its financial performanceis behind 2006. Fibre Technologies------------------Fibre Technologies has continued its strong performance and remains well aheadof last year. The Cigarette Filters business has sustained its improvedoperational performance in spite of the previously announced volume reductions.The business has benefited from a consistent improvement in operatingperformance at the Monterrey, Mexico facility and the successful exploitation ofgrowth opportunities in Asia. The Bonded Fibre Components business hasmaintained its strong growth at all locations with the benefits of ongoingmarket share gains and new technologies and projects, particularly in themedical and inkjet printer cartridge markets. Looking forward, it is expected that Filtrona will sustain its growth momentum,with the Protection and Finishing Products, Coated and Security Products and theBonded Fibre Components businesses all anticipated to make good progress in2008. The performance within the North American Plastic Profile and Sheetbusiness is expected to stabilise. In Cigarette Filters, market conditions areexpected to remain challenging and further restructuring costs to improveproductivity will impact Cigarette Filters' reported growth rates in 2008. Thisrestructuring will also position the Company to meet known changes in demandfrom a smaller customer with operations in Europe. Despite some uncertain regional economic conditions and the ongoing challengesin the Cigarette Filters business, the Board remains confident that Filtrona'sstrong international market positions will enable it to maintain furtherpositive progress in 2008. Enquiries:---------- Filtrona plc FinsburyMark Harper, Chief Executive James LevitonSteve 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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