Cookson issues Q4 update

In line with past practice, Cookson Group plc has issued an update on trading for the fourth quarter of 2003 and on the unaudited results for the year as a whole. The positive momentum that Cookson experienced in the latter part of the third quarter was sustained throughout the fourth quarter of 2003, particularly in the Electronics division. As a result, the Group’s pre-tax profit for the year will be ahead of market estimates.The Electronics division benefited from further improvements in activity levels in the electronics industry and also from new product introductions and customer gains. The division’s sales for the fourth quarter were 14% higher than the same period last year and were the highest since the second quarter of 2001. As a consequence of increased sales, positive operational leverage and cost saving initiatives, operating profit for the fourth quarter was significantly higher than the same period last year and was more than double that of 2002 for the year as a whole.The Laminates sector of the Electronics division, which had been the most severely affected by the electronics industry downturn, achieved a sales increase of more than 30% in the fourth quarter over the same period last year. The Assembly Materials sector recorded sales growth of approximately 10% in the fourth quarter, although profitability was held back by sharply higher tin prices and lower profits in its conformal coatings operations. The Chemistry sector continued to record positive results; sales grew by nearly 10% in the fourth quarter over the prior year and operating profits rose strongly.Operating profit for the Group’s continuing operations for the year was approximately £80 million. After accounting for interest paid and for losses of some £17 million incurred by businesses disposed of this year – mainly Speedline – Group profit before tax was approximately £31 million in 2003, which compares with £4 million in 2002. Profit before tax for the second half of 2003 of some £25 million compares with £6 million in the first half of the year and £16 million in the second half of 2002. The Group’s audited preliminary results for 2003 will be announced on 24 February 2004.Source: PCBnewsline