Filtrona plc
04 December 2007
FILTRONA PLC
TRADING UPDATE ON PROGRESS IN 2007
Filtrona today issues a pre-close trading statement ahead of its results for the
year ending 31 December 2007, which will be announced on 28 February 2008.
Filtrona anticipates good continued performance in 2007 in line with
management's expectations, despite the continued weakness of the US Dollar which
is expected to reduce reported revenue by c. £25m and reported operating profit
by c. £3m.
Plastic Technologies
--------------------
Plastic Technologies has again progressed satisfactorily with good underlying
trading and the benefit of the Duraco acquisition being partly offset by trading
conditions within the North American Plastic Profile and Sheet business, which
remain challenging, and also by the revenue investments in FractureCode.
The Protection and Finishing Products division has expanded its international
distribution infrastructure further and the new location in Ningbo, China
commenced trading this month. The Duraco business has been integrated
successfully and is performing in accord with the pre-acquisition plan and
performance of the MSI oil country tubular goods thread protector business has
improved in the second half after a relatively soft second quarter. In Coated
and Security Products, the tear tape and security products businesses have
continued to perform well. The European Plastic Profile and Sheet business has
progressed well but, as previously indicated, weak demand has persisted in the
North American Plastic Profile and Sheet business and its financial performance
is behind 2006.
Fibre Technologies
------------------
Fibre Technologies has continued its strong performance and remains well ahead
of last year. The Cigarette Filters business has sustained its improved
operational performance in spite of the previously announced volume reductions.
The business has benefited from a consistent improvement in operating
performance at the Monterrey, Mexico facility and the successful exploitation of
growth opportunities in Asia. The Bonded Fibre Components business has
maintained its strong growth at all locations with the benefits of ongoing
market share gains and new technologies and projects, particularly in the
medical and inkjet printer cartridge markets.
Looking forward, it is expected that Filtrona will sustain its growth momentum,
with the Protection and Finishing Products, Coated and Security Products and the
Bonded Fibre Components businesses all anticipated to make good progress in
2008. The performance within the North American Plastic Profile and Sheet
business is expected to stabilise. In Cigarette Filters, market conditions are
expected to remain challenging and further restructuring costs to improve
productivity will impact Cigarette Filters' reported growth rates in 2008. This
restructuring will also position the Company to meet known changes in demand
from a smaller customer with operations in Europe.
Despite some uncertain regional economic conditions and the ongoing challenges
in the Cigarette Filters business, the Board remains confident that Filtrona's
strong international market positions will enable it to maintain further
positive progress in 2008.
Enquiries:
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Filtrona plc Finsbury
Mark Harper, Chief Executive James Leviton
Steve Dryden, Finance Director Gordon Simpson
Tel: 01908 359 100 Tel: 020 7251 3801
This information is provided by RNS
The company news service from the London Stock Exchange
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