Second Quarter Trading Update

Cookson Group PLC
03 July 2003


3 July 2003

COOKSON GROUP plc - SECOND QUARTER TRADING UPDATE

In line with past practice, Cookson Group plc is today issuing a second quarter
trading update in advance of the release of its Interim Results for the first
half of 2003. All financial information set out in this update is preliminary
and comparisons with prior periods are at constant exchange rates.

In the update provided at Cookson's Annual General Meeting on 24 April, it was
stated that the Group's trading environment in the second quarter of 2003 was
expected to remain essentially unchanged from the first quarter. However, it was
noted that the impact of the situation in Iraq and from SARS was uncertain and,
furthermore, that activity in the Precious Metals division had fallen sharply in
March. The April update also indicated that sales and operating profit for the
Group's continuing operations for the second quarter would improve over the
first quarter of 2003.

Group sales for continuing operations in the second quarter of 2003 were 1%
higher than the first quarter, though 3% lower than the same period last year.
However, it is estimated that the increase in sales in the second quarter was
held back by at least £15 million as a consequence of both the one-off impact of
SARS and a sharp fall in activity in the Precious Metals division, as detailed
below. Operating profit is also set to increase in the second quarter over the
first quarter of 2003, although preliminary indications are that this profit
increase would have been some £7 million higher had it not been for the same
one-off impacts. Nevertheless, Group operating profit for continuing operations
and Group pre-tax profit for the first half of 2003 are expected to be well
above the first half of last year.

Cash generation in the second quarter was robust and net borrowings at the end
of the first half were well below that of both the first quarter of 2003 and
December 2002. The Group's syndicated bank facility was undrawn at the end of
June which compares with drawings of £28 million as at the end of 2002.

In Cookson's Electronics division, sales in the second quarter of 2003 were 5%
higher than the first quarter, though down 2% on the same period last year. This
performance appears to be consistent with the electronics industry in general;
activity in the USA and Europe remains depressed and the rate of growth slowed
appreciably in the Asia-Pacific region due to the SARS crisis. As some 35% of
the division's sales are currently made in Asia-Pacific, the slowdown in
activity in this region largely contributed to the division's second quarter
sales being lower than anticipated. Margin improvement initiatives that were
introduced throughout the division during the first half offset the impact of
raw material cost price increases that arose in the period. The benefits of
plant rationalisations and closures, as well as other cost saving measures that
were introduced progressively last year, continued to accrue in the second
quarter.

For the Ceramics division, sales in the second quarter were 2% higher than the
first quarter of 2003 and 1% higher than the same period last year. Steel
production in the division's major markets - Europe and USA - was up some 2% and
5% respectively for the five months to May over the same period last year,
though the rate of growth slowed in the second quarter in the USA. Unlike the
Electronics division, only a relatively small amount of the Ceramics division's
sales are made in those parts of the Asia-Pacific region where SARS was
prevalent, and the adverse impact was only felt in its operation in China where
sales growth slowed in the second quarter.

The performance of the Precious Metals division continued to be impacted by weak
demand for gold jewellery in both the USA and Europe. As indicated in the April
update, activity in the division's US operations fell sharply in March and
continued to fall further in the second quarter, primarily due to large
merchandisers introducing well publicised programmes to reduce inventories
significantly. As a result, the division's sales in the second quarter were 9%
lower than the first quarter of 2003 and 13% lower than the same period in 2002.
Reported sales for the quarter, however, include the effect of a 15% higher gold
price than last year; when this is excluded, the resulting decrease in
underlying activity is markedly greater. In response, a cost reduction
initiative has been implemented that will result in a reduction in headcount of
some 160 people (7% of the division's workforce). As a consequence, operating
costs in the second half of 2003 will be some £3 million lower than the first
half before one-off costs of approximately £1 million.

The benefits of the many initiatives taken throughout the Group over the last 18
months to lower its cost base have continued to flow through, especially in the
Electronics division. Management is determined that proactive action will
continue to be taken to improve the Group's profitability and to build on its
strong market positions.


Cookson will announce its Interim Results for the six months ended 30 June 2003
on Tuesday 29 July 2003.


A conference call for shareholders and analysts will be held at 4:00pm on
Thursday 3 July. The call will be broadcast live on www.cooksongroup.co.uk



Shareholder/analyst enquiries:

Cookson Group plc      Tel: [phone]

Stephen Howard, Group Chief Executive

Dennis Millard, Group Finance Director

Lisa Williams, Investor Relations Manager


Press enquiries:

Hogarth Partnership    Tel: [phone]

John Olsen


Note: All financial information is for continuing operations and is preliminary
and unaudited. All financial information and comparisons are also on a
like-for-like basis and are at average exchange rates for the quarter ended June
2003. Operating and pre-tax profit are stated before goodwill amortisation and
exceptional items.

This announcement contains forward-looking statements about Cookson. Although
the Company believes its expectations are based on reasonable assumptions, any
such statements may be influenced by factors that could cause actual outcomes
and results to be materially different from those predicted. These forward
looking statements are subject to numerous risks and uncertainties that could
cause actual results to differ materially from those in such statements, certain
of which are beyond the control of Cookson.








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