19th Dec 2006 07:01
Cookson Group PLC19 December 2006 PRE-CLOSE PERIOD TRADING UPDATE - IN LINE WITH EXPECTATIONS ANNOUNCEMENT OF DISPOSAL OF TWO NON-CORE BUSINESSES Trading Update Cookson Group plc ("Cookson" or "the Group"), a leading materials sciencecompany, issues its pre-close trading update ahead of its 2006 full year resultsto be announced on 13 March 2007. End-market trends and the Group's overall trading performance have remained inline with the expectations set out in the Trading and Strategic Plan Updatesannouncement made on 7 November 2006. Disposals Monofrax With effect from 18 December, Cookson entered into an agreement to sellMonofrax, a fused-cast refractories business which forms a separate part of theCeramics division, to RHI AG of Austria for US$45 million (£23 million*).Completion of the transaction, which is conditional on satisfactory approval ofthe relevant antitrust authorities, is expected during the first quarter of2007. The purchase price will be satisfied on completion by an assumption bythe acquirer of pension, retirement medical and other liabilities, estimated atUS$10 million (£5 million*), with the balance satisfied in cash, estimated atUS$35 million (£18 million*). Monofrax is based in New York State, USA and manufactures high density ceramicblocks used primarily to line glass-making furnaces in order to contain moltenglass. For the year ended 31 December 2005, Monofrax had revenue of £25 millionand a trading profit of £3 million. PVC Cements On 18 December, Cookson sold its Florida, USA based PVC Cements business, whichforms part of the Assembly Materials sector of the Electronics division, to agroup of private investors with holdings in packaging and speciality chemicalcompanies for a cash consideration of US$3 million (£2 million*). The cementsare used primarily as a jointing product for PVC piping. For the year ended 31 December 2005, PVC Cements had revenue of £5 million andreported a breakeven trading performance. Commenting on these disposals, Nick Salmon, Chief Executive of Cookson said: "Monofrax and PVC Cements are non-core businesses where we have relatively smallmarket share positions and their disposal is part of our strategy to focus ourportfolio on businesses where we have leading market positions." For further information please contact Shareholder/analyst enquiries: Cookson Group plc Isabel Luetgendorf, Investor Relations Manager Tel: +44 (0)20 7822 0000 Media enquiries:Hogarth PartnershipJohn Olsen Tel: +44 (0)20 7357 9477 Notes: * translated at an exchange rate of US$1.95/£1 About Cookson Group plc Cookson Group plc is a leading materials science company operating on aworldwide basis in Ceramics, Electronics and Precious Metals markets. The Ceramics division is the world leader in the supply of advanced flow controlrefractory products and systems to the global steel industry and a leadingsupplier of specialist ceramic products to the glass and foundry industries. Itis also a regional leader in the US, UK and Australia in the supply andinstallation of monolithic refractory linings. The Electronics division is a leading supplier of advanced surface treatment andplating chemicals and assembly materials to the automotive, construction andelectronics markets. The Precious Metals division is a leading supplier of fabricated precious metals(gold, silver, platinum, etc.) to the jewellery industry in the US, the UK,France and Spain. Products include alloy materials, semi-finished jewellerycomponents and finished jewellery. Forward Looking Statements This announcement contains certain forward looking statements which may includereference to one or more of the following: the Group's financial condition,results of operations, cash flows, dividends, financing plans, businessstrategies, operating efficiencies or synergies, budgets, capital and otherexpenditures, competitive positions, growth opportunities for existing products,plans and objectives of management and other matters. Statements in thisdocument that are not historical facts are hereby identified as "forward lookingstatements". Such forward looking statements, including, without limitation,those relating to the future business prospects, revenues, working capital,liquidity, capital needs, interest costs and income, in each case relating toCookson, wherever they occur in this document, are necessarily based onassumptions reflecting the views of Cookson and involve a number of known andunknown risks, uncertainties and other factors that could cause actual results,performance or achievements to differ materially from those expressed or impliedby the forward looking statements. Such forward looking statements should,therefore, be considered in light of various important factors. Importantfactors that could cause actual results to differ materially from estimates orprojections contained in the forward looking statements include withoutlimitation: economic and business cycles; the terms and conditions of Cookson'sfinancing arrangements; foreign currency rate fluctuations; competition inCookson's principal markets; acquisitions or disposals of businesses or assets;and trends in Cookson's principal industries. The foregoing list of important factors is not exhaustive. When relying onforward looking statements, careful consideration should be given to theforegoing factors and other uncertainties and events, as well as factorsdescribed in documents the Company files with the UK regulator from time to timeincluding its annual reports and accounts. Such forward looking statements speak only as of the date on which they aremade. Except as required by the Rules of the UK Listing Authority and the LondonStock Exchange and applicable law, Cookson undertakes no obligation to updatepublicly or revise any forward looking statements, whether as a result of newinformation, future events or otherwise. In light of these risks, uncertaintiesand assumptions, the forward looking events discussed in this announcement mightnot occur. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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