Morgan Crucible Co. (MGCR.L), a manufacturer of carbon and ceramics, reported Wednesday a 9.1% increase in pre-tax profit and 15.4% revenue growth for the first-half. The results benefited from contributions in the Technical Ceramics businesses that surpassed expectations.
Profit before taxation grew 9.1% to GBP 30.2 million from GBP 29.1 million in the same period of last year.
Profit for the period attributable to equity holders of the parent rose to GBP 28.8 million or 10.5 pence per share from GBP 27.4 million or 9.5 pence per share in the year-ago period.
First-half revenue increased 15.4% to GBP 401.2 million from GBP 347.8 million in the previous year. On an organic and constant currency basis, revenues grew by 4.9%.
The company said it continued to focus on higher growth, higher margin markets, and thus increased the proportion of overall revenues in key markets like defense, aerospace and petrochemical sectors, while reducing exposure to more commoditised automotive, consumer goods and telecommunications markets.
Segment-wise, Morgan Crucible reported 7.2% revenue growth in the Carbon division. The Carbon division makes products like carbon brush and related components, body armour, among other products, for the aerospace and space exploration industries.
Though the company faced a morbid demand in the semiconductor industry, demand for high temperature insulating products for the solar energy market was lucid and the company commissioned a new high temperature insulating product line in the second quarter.
The NP Aerospace business recorded revenue growth of 45.5%, and has a strong order book on new contracts secured from the US military.
The Technical Ceramics business recorded revenues of GBP 98.3 million, up 26.3% from GBP 77.8 million year-over-year, including GBP 14.4 million of revenue contributed by Carpenter businesses acquired in March 2008.
The company said that it expects to see the hard disk drive business return to volume in 2009.
Revenues in the Insulating Ceramics business were up 15.6% to GBP 184.8 million from GBP 159.8 million in the previous year. On a constant currency basis, revenues increased by 7.1%.
Further, the Board has declared an interim dividend of 2.5 pence per ordinary share, payable on November 7th to shareholders of record as of October 3, 2008.
Looking ahead, the Board expects performance for the full year to be in line with expectations, supported by a healthy order book and strong market position in the resilient end markets.
Shares of MGCR.L are currently trading on LSE at 207.00 pence, up 7.50 pence or 3.76%, on a volume of 308,895 shares.
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