Morgan Crucible reports it has continued to see positive trading momentum, according to its Interim Management Statement for the period from July 4-November 16, 2010. In the 10-month period, year-to-year revenue growth was approximately 7%. Excluding NP Aerospace and at constant currency, revenue growth over the same period was 16%, compared to the 10% reported at the half year. The group’s net debt-to-EBITDA ratio is expected to be below two times at year’s end, driven by good cash generation from the positive trading performance.
Most markets served by the Technical Ceramics division have been showing improved demand during the year. U.S. markets, in particular, have recovered strongly. Asian demand is growing well and Europe, though more subdued, is also showing a positive trend. Aerospace markets have recovered well from the slowdown seen in mid-2009, with the company’s U.S. metals business, in particular, benefitting from its alignment with this sector.
The company reports that Thermal Ceramics continued to see improving end market demand across all regions in the third quarter of the year. As a result, order books in emerging markets (particularly China and India) have continued to improve. In addition, the North America and Europe regions have also seen an increase in activity.
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