Ceramic Industry

Morgan Crucible Reports 9.7% Growth

August 23, 2010

Morgan Crucible has reported that its revenues for the half year increased to £501.1 million (~$781.6 million), up from £492 million (~$767 million) in 2009. At constant currency and excluding NP Aerospace, the group achieved 9.7% growth compared with the first half of 2009.

First half 2010 revenues for the Carbon division were £186.6 million (~$291 million) vs. £200.6 million (~$312 million) in 2009, representing a decrease at reported rates of 6.9%. At constant currency, this decrease was 7.7%. The revenues for the base Carbon division, excluding NP Aerospace, were £123.7 million (~$192.9 million), compared to £105.1 million (~$163.9 million) last year, representing an increase of 17.7% at reported rates, or 15.9% on a constant currency basis. NP Aerospace revenues in the first half of 2010 were £62.9 million (~$98 million), vs. £95.5 million (~$148 million) in 2009.

Revenues for the first half of 2010 in Technical Ceramics were £124.4 million (~$194 million) compared to £110.6 million (~$172 million), an increase at reported rates of 12.5%. At constant currency, the increase in revenues was 13.2%.

“The group’s strategy of focusing on more differentiated, less economically cyclical markets has delivered significantly better earnings levels during the global economic downturn,” said Mark Robertshaw, CEO. “Following our resilient profit and margin performance in 2009, the group’s underlying order book, excluding NP Aerospace, has been showing consistent month-on-month growth since the fourth quarter of last year giving us good momentum as we enter the second half. I am encouraged by our good progress in both profits and margin this year. This year-on-year profit improvement, coupled with healthy cash generation, underpin an 8% increase in the interim dividend reflecting the board’s confidence in the group’s strategy and outlook.

“Our focus remains on the actions we ourselves take to improve the quality and performance of our business. To this end, in July of this year we initiated a fundamental streamlining of our divisional structure by rationalizing the existing business units into two new divisions. We believe this simplified structure will help position the group for faster top line growth, greater operational efficiencies and improved margins. Whilst the global economic demand outlook remains uncertain, we believe that this is an exciting time for the group as we continue to improve the quality, focus and prospects of our business.”

For more information, visit www.morgancrucible.com.