Interim Results

Morgan Crucible Co PLC
11 September 2000



THE MORGAN CRUCIBLE COMPANY  plc
INTERIM STATEMENT 2000

HIGHLIGHTS

      'BENEFITS OF STRATEGIC REPOSITIONING SHOW THROUGH'


                              2000        1999       Increase
  Group turnover          £m 526.0       436.0          20.6%
  Operating Profit*       £m  53.4        47.4          12.7%
  Pre-Tax Profit*         £m  45.2        40.2          12.4%
  Underlying EPS       pence  11.8        10.4          13.5%
  Dividend per share   pence   7.4         7.4           -
  
  
  *  Underlying Pre-Tax Profit* increased by 12.4% to £45.2
     million (1999 : £40.2 million).

  *  VAC acquired in December 1999, grew sales by 21% over the
     same period last year and contributed strongly to Group
     profits.

  *  Additional proceeds of £64.2 million (1999: £168.2 million)
     from disposals of non-core operations have been generated.
     This substantially completes this programme.

  *  Underlying earnings per share increased by 13.5% to 11.8 pence
     (1999 : 10.4 pence).

  *  Dividend remains unchanged at 7.4 pence.

  *  Net borrowings reduced by £27.2 million since the start of the
     year to £205.1 million.


Commenting on the results, Ian Norris, Group Chief Executive, said:

'The  successful repositioning of the Group into higher growth
markets continues.  VAC has achieved an exceptional
performance ahead of expectations and, with the additional
capacity we have added, is well placed for further growth.
The benefits of globally managing our businesses have also
started to be demonstrated with organic sales growth across
our core businesses.  There are still challenges but we remain
totally committed to continuing the transformation of the
prospects of the Group.'


*Before goodwill amortisation of £3.1m (1999 : £0.7m) and
operating exceptional charges of £3.9m (1999 : £14.4m).

Growth in organic sales, as referred to in this statement, is
calculated after adjusting for movements in foreign exchange
rates as well as the impact of acquisitions and disposals.


                THE MORGAN CRUCIBLE COMPANY plc
                    INTERIM STATEMENT 2000
                               
                               
Strategic Progress

A major strategic repositioning of the Group was announced in
late 1998.  The key elements comprise:

  *  restructuring the Group's management around a smaller
     number of focussed businesses each with global potential;

  *  disposing of businesses lacking this global potential or
     which did not fit with Morgan's core competencies of advanced
     materials technology and applications engineering;

  *  repositioning the Group's activities into markets with
     above average long-term growth potential.

Our performance in the first half of the year demonstrates the
benefits of this programme.  Increased focus and a
restructured operating base have led to organic sales growth
and improved margins for a number of our businesses.  Our
disposal programme for non-core operations has been largely
completed and has generated further cash proceeds of £64.2
million.  The acquisition of Vacuumschmelze GmbH (VAC) in
December last year has brought a world leading position to the
Group in the area of magnet technology.  VAC's strong presence
in the telecommunications, medical, electronic article
surveillance and computer systems markets is a major plank in
the strategy of repositioning Morgan towards higher growth
markets.  It has also been a major contributor to our first
half performance.

Carbon Division

Our Carbon Division comprises our Electrical and Engineered
Carbon businesses and includes the Magnetics business created
following the acquisitions of VAC and Crumax in 1999.  Total
sales for the Division were £276.8 million (1999 : £150.3
million), an increase of 84.2% over the same period last year.
This growth was driven primarily by the inclusion of VAC for a
full six months although encouraging organic growth was shown
in other parts of the Division.

The Carbon Division achieved Operating Profits of £27.1
million (1999 : £18.1 million).  On an underlying basis,
before goodwill amortisation and operating exceptional
charges, operating profits of £31.0 million were achieved
(1999 : £21.9 million), an increase of 41.6%.  Underlying
operating margin for the Division as a whole was 11.2%
compared with 14.6% last year.  This movement is predominantly
a consequence of the addition of the Group's substantial
magnetics activities.  Magnetics' organic sales growth has
been very strong but their operating margin is below the
average for the division.  Lower sales from our Industrial
Traction business have also contributed to the decline in
operating margins.

Magnetics

Sales of our Magnetics business were £116.7 million (1999 : £
Nil), the large majority of which were achieved by VAC, which
was acquired in December 1999 for a consideration of £139.8
million.  VAC's full year sales in 1999 were £176.7 million.
VAC is a world leader in magnet technology with a substantial
presence in high growth markets such as telecommunications,
medical, electronic article surveillance and computer systems.
Sales at VAC have grown by 21% over the same period last year
and demand for the Group's magnetic products has remained
strong throughout the period.  Following substantial capital
expenditure in the first half of the year, additional capacity
has recently been commissioned to support further growth.

In order to provide maximum support to this business Crumax,
our Magnetics operation in the USA, is being fully integrated
with VAC to create a separate Magnetics business within the
Carbon Division.  Further capital expenditure is envisaged to
harmonise our manufacturing technology across all our
international facilities and to meet increasing demand.

Electrical Carbon

Sales in our Electrical Carbon business were £97.9 million
(1999 : £96.3 million).  Within this total, an encouraging
performance from the Auto/Consumer business compensated for a
decline in sales in the Industrial Traction market.
Underlying sales of the latter fell slightly, in part due to
deferred railway orders which are now anticipated in the
second half of the year.

Auto/Consumer sales showed encouraging growth with a
particularly strong performance from our US business.

The combination of our substantial positions in the global
Electrical Carbon and Magnetics businesses uniquely positions
Morgan to take advantage of developing technologies in the
world market for electrical motors.  Joint business teams have
been formed to capitalise on these cross-selling opportunities
and customer presentations made so far are already beginning
to show positive results.

Engineered Carbon

Our Engineered Carbon business achieved sales of £62.2 million
(1999 : £54.0 million), with underlying organic sales growth of
5.3%.  Engineered Carbon comprises our mechanical carbon
activities, offering a range of coatings and carbon products
with mechanical qualities such as self-lubrication and wear
resistance.  It also includes our Specialty Graphite business
which serves many of the more technically demanding markets of
tomorrow.  The Mechanical Carbon business grew organically
with encouraging performances from most markets and a
particularly positive contribution from the Coatings business.
The Coatings business is based primarily in the US and the UK
with opportunities for further international expansion
currently being reviewed.

Organic growth for the Specialty Graphite business was
particularly encouraging.  Advanced graphite and carbon
materials have unique properties that give them strong
positions in a number of markets with excellent growth
potential.  Key amongst these is the market for fuel cells
where Morgan is a leading supplier of graphite bi-polar plates
which are a major element within the power-generating cells.
Passenger buses powered by fuel cells fitted with Morgan
supplied plates are already being used in Montreal and
Chicago.

The market remains some way from full commercialisation and a
range of technical solutions continues to be researched.
Morgan has relationships with each of the key fuel cell
manufacturers as well as with leading research institutions
and is committed to remaining a leading player within this
exciting market.

Ceramics Division

The Ceramics Division includes the Group's Technical Ceramics
and Insulating Ceramics businesses.  Total sales for the
Division were £224.6 million (1999 : £217.0 million).

Operating profits for the Ceramics Division were £18.2 million
(1999 : £10.8 million).  On an underlying basis before
goodwill amortisation and operating exceptional charges,
operating profits were £21.0 million (1999 : £21.8 million), a
decline of 3.7% compared to the same period last year.
Operating margins, on an underlying basis for the division as
a whole, were 9.3% (1999 : 10.0%).  Strong sales growth in the
Technical Ceramics businesses helped their margins move ahead,
although this was offset by operational issues encountered in
the Insulating Ceramics business.

Technical Ceramics

The Technical Ceramics business achieved sales of £67.1
million (1999 : £59.6 million), with total organic growth of
12.1%.  Within this, our Advanced Ceramics business showed
particularly strong progress over last year.  The Advanced
Ceramics business was substantially restructured during 1999
with a number of plants rationalised and sales and marketing
teams combined to enable the business to better leverage its
market positions.  The benefits of this restructuring are now
being realised.  This is particularly the case in the US where
the combined sales and marketing effort is now able to focus
more aggressively on growth markets such as telecommunications
and medical where there is strong demand for our ceramic
brazing and metallising skills.

Our Electro-Ceramics business also advanced strongly against
last year.  The properties of piezo electric ceramics,
microwave dielectrics and multi-layered ceramic actuators are
opening up new opportunities for the Group across a wide range
of markets.  To further strengthen our position within these
growth markets the Group has recently agreed to acquire the
piezo-ceramics actuator component business of Philips NV for a
total consideration of £4.1 million.  This acquisition,
although currently small in size, will provide additional key
technology to support our growing presence in this market.

Insulating Ceramics

Insulating Ceramics sales were £157.5 million (1999 : £157.4
million).  However, on an underlying basis sales declined by
2.7%.  Our Crucibles business is being substantially
restructured this year with a major redevelopment of its UK
site and the closure of its French plant currently underway.
Whilst these activities have held the business back this year,
we expect to realise the benefits in 2001.

Our Thermal Ceramics business was impacted by substantial
operational difficulties at its North American facilities.
Delays in commissioning a new facility in Mexico disrupted
capacity planning and utilisation at the Group's US plants and
has adversely affected operating margins.  The commissioning
of the Mexican plant has now been completed.

Disposals

The programme to dispose of the Group's non-core operations,
which commenced in 1999, was largely completed during the
first half of the current year.  Further cash proceeds of
£64.2 million were generated compared to £168.2 million for
the same period last year and £176.9 million for the whole of
1999.

Businesses sold during the first half of the year contributed
£12.6 million (1999 : £54.5 million) and £0.4 million (1999 :
£2.6 million) to turnover and operating profit respectively.
These are shown under Discontinued Operations on the face of
the profit and loss account.

Remaining non-core businesses awaiting disposal contributed
£12.0 million (1999 : £14.2 million) to turnover and £0.7
million (1999 : £0.8 million) to reported operating profit in
the first half of the year.

Financial Review

Group Operating Profit amounted to £46.4 million (1999 : £32.3
million) after charging operating exceptionals of £3.9 million
(1999 : £14.4 million) and goodwill amortisation of £3.1
million (1999 : £0.7 million).  Operating exceptional charges
relate to the continuing business restructuring programme that
commenced in 1999.  The final costs for this programme are
expected to be incurred in the second half of the current
year.  Goodwill amortisation rose significantly over last year
following the acquisition of VAC at the end of 1999.  Non-
operating exceptional items of £18.3 million profit (1999 :
£32.8 million profit) during the year relate principally to
gains made on the sale of non-core businesses.

Underlying operating profits, before charging the above items,
were £53.4 million (1999 : £47.4 million), an increase of 12.7%
over the same period last year.

Net finance charges were £8.4 million (1999 : £7.3 million).
The majority of the Group's borrowings are on a variable
interest rate basis and have been impacted by the general
tightening of interest rates compared to the same period last
year.  Net interest expense is covered 6.0 times by underlying
pre-tax profits (1999 : 6.4 times).

Net cash inflow from operating activities amounted to £44.8
million (1999 : £29.0 million).  The higher level of operating
profit explains the major part of the increase over last year.
Cash invested in stocks and debtors also increased, although
this was predominantly at VAC where substantial growth in
turnover has necessitated higher levels of working capital.

Net capital expenditure on tangible fixed assets of £26.9
million (1999 : £13.4 million) has increased largely due to
the substantial investment in extra capacity established at
VAC during the first half of the year.  This resulted in free
cash outflow of £18.4 million (1999 outflow : £23.3 million).

Borrowings at the end of the period amounted to £205.1 million
compared to £232.3 million at the end of 1999 and £103.9
million at the same time last year.  Net borrowings have
fallen by £27.2 million since the year-end and would have
fallen by a further £10.5 million had foreign exchange rates
remained unchanged since the beginning of the year.

Basic earnings per share were 17.0 pence (1999 : 14.6 pence)
including a net contribution of 5.2 pence (1999 : 4.2 pence)
from exceptional items

Interim Dividend

The Board has declared an interim dividend of 7.4 pence per
Ordinary share (1999 : 7.4 pence).  The dividend will be paid
on 8 January 2001 to Ordinary shareholders on the register of
members at the close of business on 3 November 2000.  Ordinary
shareholders will be given the opportunity of acquiring shares
in lieu of the cash dividend by means of a Dividend
Reinvestment Plan. Forms of election and an explanatory
circular will be posted to shareholders in November 2000.

Outlook

The performance of the Magnetics business in its first six
months under Morgan's ownership was particularly good.  Across
the Group our end markets are performing broadly in line with
our expectations and order books are ahead of last year.  The
steps we have taken to transform the prospects of the Group
are now starting to bear fruit and we look forward to the
future with confidence.

11th September 2000                          
                                             
Dr. Bruce Farmer CBE, Chairman               Registered Office:
Ian Norris, Group Chief Executive            Morgan House
For and on behalf of the Board               Madeira Walk
                                             Windsor
                                             Berkshire, SL4 1EP
                                             Registered in England
                                                     number 286773







CONSOLIDATED PROFIT STATEMENT FOR THE SIX MONTHS ENDED 4 JULY 2000
                                                   Restated Restated
                         -------Six months-------Six months     Year
                                   2000                1999     1999
                      ___________________________      ____     ____
                           Before   Except-
                      exceptional    ional
                            items    items   Total    Total    Total
                     Note      £m       £m      £m       £m       £m
Turnover
Continuing operations       513.4       -    513.4    381.5    776.1
Discontinued operations      12.6       -     12.6     54.5     86.3
                            _____    _____   _____    _____    _____
Group turnover          2   526.0       -    526.0    436.0    862.4

Net operating costs     3   475.7      3.9   479.6    403.7    787.3
                            _____    _____   _____    _____    _____
Operating profit
Continuing operations        49.9     (3.9)   46.0     29.7     70.6
Discontinued operations       0.4       -      0.4      2.6      4.5
                            _____    _____   _____    _____    _____
Group operating profit  2    50.3     (3.9)   46.4     32.3     75.1

Investment income             0.2       -      0.2      0.1      0.3

Other exceptional items 4
Continuing operations
- Disposal of fixed assets     -       0.1     0.1       -       0.7
- Profit on sale of business   -        -       -       2.1      1.6
- Loss  on closure of
  business                     -        -       -        -      (2.4)

Discontinued operations
- Net Profit on sale
  of businesses                -      18.2    18.2     30.7     32.7
                            _____    _____   _____    _____    _____
                               -      18.3    18.3     32.8     32.6
                            _____    _____   _____    _____    _____

Profit on ordinary activities 
before interest              50.5     14.4    64.9     65.2    108.0
Net finance charges           8.4       -      8.4      7.3     13.8
                            _____    _____   _____    _____    _____
Profit on ordinary activities
before taxation              42.1     14.4    56.5     57.9     94.2
Taxation                5    13.0      2.3    15.3     22.2     32.7
                            _____    _____   _____    _____    _____
Profit on ordinary activities
 after taxation              29.1     12.1    41.2     35.7     61.5
                            _____    _____
Equity minority interest                      (0.8)    (0.8)    (0.8)
Preference dividends                          (1.0)    (1.1)    (2.1)
                                             _____    _____    _____
Earnings attributable to
 ordinary shareholders                        39.4     33.8     58.6
Ordinary dividends                           (17.2)   (17.2)   (36.9)
                                             _____    _____    _____
Retained profit for the period                22.2     16.6     21.7
                                             =====    =====    =====
Earnings per share      6
-  underlying                11.8p            11.8p    10.4p    22.4p
-  adjustment for
   exceptional items                   5.2p    5.2p     4.2p     2.9p
                            _____    _____   _____    _____    _____
-  basic                     11.8p     5.2p   17.0p    14.6p    25.3p
                            _____    _____   _____    _____    _____
-  basic excluding 
   goodwill amortisation                      18.3p    14.9p    26.1p
-  diluted                                    17.0p    14.6p    25.1p


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE SIX MONTHS
ENDED 4 JULY 2000
                                               Six      Six
                                            months   months     Year
                                              2000     1999     1999
                                                £m       £m       £m
Net profit attributable to shareholders       40.4     34.9     60.7
Foreign currency translation                   9.7     (3.7)    (9.7)
                                             _____    _____    _____
Total recognised gains and
 losses relating to the period                50.1     31.2     51.0
                                             =====    =====    =====


CONSOLIDATED CASHFLOW STATEMENT FOR THE SIX MONTHS ENDED 4 JULY 2000

                                 Six months    Six months       Year
                                       2000          1999       1999
                       Note      £m      £m    £m      £m  £m     £m
Net cash inflow from
 operating activities   7              44.8          29.0      101.9

Returns on investments
 and servicing of finance
Interest received               4.7           3.0         7.5
Interest paid                 (11.9)        (10.4)      (21.7)
Preference dividends paid      (1.0)         (1.1)       (2.1)
                              _____         _____       _____
                                       (8.2)         (8.5)     (16.3)

Taxation                              (10.9)        (13.2)     (26.5)

Capital expenditure and
 financial investments
Purchase of tangible
 fixed assets                 (28.7)        (15.3)      (40.0)
Proceeds on sale of 
 tangible fixed assets          1.8           1.9         5.9
Purchase of investments        (5.6)           -         (0.6)
Disposal of investments          -            1.1         1.4
                              _____         _____       _____
                                      (32.5)        (12.3)    (33.3)
Acquisitions and disposals
Acquisition of subsidiary 
 undertakings                    -          (10.9)     (140.8)
Net cash acquired                -            0.8         2.1
Deferred consideration for
 prior year acquisitions       (2.5)        (19.6)      (20.4)
Disposal of businesses         64.2         168.2       176.9
                              _____         _____       _____

                                       61.7         138.5      17.8

Equity dividends paid                 (17.2)        (17.2)    (36.9)
                                      _____         _____     _____

Cash inflow before use
 of liquid resources                   37.7         116.3       6.7

Management of liquid resources
Decrease/(increase) 
 in cash on deposit                    68.0        (101.1)    (69.9)

Financing
Increase in share capital        -            0.3         0.3
Net (decrease)/increase
 in bank loans               (115.4)         (8.5)       82.3
Repurchase of exchangeable
 redeemable preference shares  (2.4)         (1.6)       (3.3)
                              _____         _____       _____
                                     (117.8)         (9.8)      79.3
                                      _____          _____     _____

Net (decrease)/increase in cash       (12.1)          5.4       16.1
                                      =====          =====     =====

Reconciliation to net borrowings
Net (decrease)/increase 
in cash                       (12.1)          5.4        16.1
Cashflow from decrease/
(increase) in loans           115.4           8.5       (82.3)
Cashflow from (decrease)/
increase in deposits          (68.0)        101.1        69.9
Cashflow from repurchase
 of exchangeable redeemable 
 preference shares              2.4           1.6         3.3
                              _____         _____       _____
Change in net borrowings
 resulting  from cashflows             37.7         116.6        7.0
Issue/increase of exchangeable 
 redeemable preference shares            -           (4.0)      (4.1)
Bank loans acquired with acquisitions    -           (2.8)     (33.8)
Exchange movement                     (10.5)        (13.8)      (1.5)
                                     _____          _____      _____
Movement in net borrowings
 during the period                     27.2          96.0      (32.4)
Opening net borrowings               (232.3)       (199.9)    (199.9)
                                      _____         _____      _____
Closing net borrowings               (205.1)       (103.9)    (232.3)
                                      =====         =====      =====

CONSOLIDATED FREE CASHFLOW FOR THE SIX MONTHS ENDED 4 JULY 2000

                                  Six months  Six months       Year
                             Note       2000        1999       1999
                                          £m          £m         £m
Operating cashflow            7         44.8        29.0      101.9
Net interest paid                       (7.2)       (7.4)     (14.2)
Taxation paid                          (10.9)      (13.2)     (26.5)
Net dividends                          (18.2)      (18.3)     (39.0)
                                       _____       _____      _____
Post dividend cashflow                   8.5        (9.9)      22.2
Net capital expenditure
 on tangible fixed assets              (26.9)      (13.4)     (34.1)
                                       _____       _____      _____
Free cashflow                          (18.4)      (23.3)     (11.9)
                                       =====       =====      =====


CONSOLIDATED BALANCE SHEET AS AT 4 JULY 2000

                                   Six months  Six months       Year
                              Note       2000        1999       1999
                                           £m          £m         £m
Fixed assets
Goodwill                                116.0        34.6      107.9
Tangible assets                         484.6       406.1      489.2
Other investments                        12.2         5.5        6.2
                                        _____       _____      _____
                                        612.8       446.2      603.3
                                        _____       _____      _____
Current assets
Stocks                                  187.0       146.8      189.9
Debtors                                 248.4       221.3      231.7
Cash at bank and in hand                112.1       208.4      191.7
                                        _____       _____      _____
                                        547.5       576.5      613.3
Current liabilities            8        424.8       325.5      324.8
                                        _____       _____      _____
Net current assets                      122.7       251.0      288.5
                                        _____       _____      _____
Total assets less current
 liabilities                            735.5       697.2      891.8
                                        _____       _____      _____
Creditors - amounts falling
 due after more than one year
Term loans                              134.3       204.5      322.5
Exchangeable redeemable
 preference shares                       10.1        13.7       11.7
Grants for capital expenditure            2.0         2.1        2.2
                                        _____       _____      _____
                                        146.4       220.3      336.4
Provisions  for liabilities
 and charges                            125.7        45.0      124.8
                                        _____       _____      _____
                                        272.1       265.3      461.2
                                        _____       _____      _____
                                        463.4       431.9      430.6
                                        =====       =====      =====
Capital and reserves
Equity shareholders' funds
  Called up share capital                57.9        58.0       57.9
  Share premium account                  44.2        44.1       44.2
  Revaluation reserve                    15.9        24.4       15.6
  Other reserves                          0.7         0.4        0.7
  Profit and loss account               299.8       258.1      266.0
                                        _____       _____      _____
                                        418.5       385.0      384.4
Non-equity shareholders' funds
  Called up share capital                30.3        30.3       30.3
                                        _____       _____      _____
                                        448.8       415.3      414.7
Minority interest
  Equity                                 14.6        16.0       15.8
  Non-equity                               -          0.6        0.1
                                        _____       _____      _____
                                         14.6        16.6       15.9
                                        _____       _____      _____

                                        463.4       431.9      430.6
                                        =====       =====      =====


MOVEMENT IN SHAREHOLDERS' FUNDS FOR THE SIX MONTHS ENDED 4 JULY 2000
                                   Six months  Six months       Year
                                         2000        1999       1999
                                           £m          £m         £m
Net profit attributable to shareholders  40.4        34.9       60.7
Goodwill written back to profit and loss  2.2        85.8       86.3
Dividends                               (18.2)      (18.3)     (39.0)
                                        _____       _____      _____
                                         24.4       102.4      108.0
New share capital                          -          0.3        0.3
Goodwill written back
against reserves                           -          0.2         -
Foreign currency translation              9.7        (3.7)      (9.7)
                                        _____       _____      _____
Net increase to shareholders' funds      34.1        99.2       98.6
Opening shareholders' funds             414.7       316.1      316.1
                                        _____       _____      _____
Closing shareholders' funds             448.8       415.3      414.7
                                        =====       =====      =====

NOTES
1.Basis of preparation
  The interim financial information, which has been approved by the
  Board of Directors, has been prepared on a consistent basis with
  the accounting policies set out in the Group's 1999 annual report
  and accounts.
  The results and balance sheet for the year 1999 are an abridged
  version of the full accounts which received an unqualified report
  by the auditors and have been filed with the Registrar of
  Companies.
2.Segmental information
  Product group                     Turnover        Operating profit
                           Six    Six             Six    Six
                       months  months   Year   months  months   Year
                         2000    1999   1999     2000    1999   1999
                           £m      £m     £m       £m      £m     £m
  Carbon                276.8   150.3  322.2     27.1    18.1   42.2
  Ceramics              224.6   217.0  428.1     18.2    10.8   27.6
  Non core businesses    12.0    14.2   25.8      0.7     0.8    0.8
                        _____   _____  _____    _____   _____  _____
                        513.4   381.5  776.1     46.0    29.7   70.6
  Discontinued
   operations            12.6    54.5   86.3      0.4     2.6    4.5
                        _____   _____  _____    _____   _____  _____
                        526.0   436.0  862.4     46.4    32.3   75.1
                        =====   =====  =====    =====   =====  =====

  Non core businesses include the remaining constituents of the
  Emblem Group.
  The discontinued operations include the results for the Dulmison
  Group, Laser Diode Inc and Gerald L Greer Company Inc and in 1999
  also incorporate the Chemical Products business, Hydrotex Inc,
  Simonsen and Sons Aps and Spanoptic Limited.

  Geographical area
  The analysis shown below is based on the location of the
  contributing companies:
                                    Turnover        Operating profit
                          Six     Six             Six     Six
                       months  months   Year   months  months   Year
                         2000    1999   1999     2000    1999   1999
                           £m      £m     £m       £m      £m     £m
  United Kingdom
   Sales in the UK       31.5    33.1   65.2
   Sales overseas        41.7    42.3   79.2
                        _____   _____  _____
  Total United Kingdom   73.2    75.4  144.4     (4.4)   (6.2) (11.9)
  Rest of Europe        191.5    92.9  197.2     19.3     5.6   14.7
  The Americas          234.7   177.2  367.9     24.1    25.0   56.8
  Far East and
   Australasia           57.5    48.0   96.8      6.0     4.5    8.9
   Middle East
   and Africa             4.5     5.0   10.2      1.0     0.8    2.1
                        _____   _____  _____    _____   _____  _____
                        561.4   398.5  816.5     46.0    29.7   70.6

  Discontinued 
   operations            12.6   54.5    86.3      0.4     2.6    4.5
  Inter-segment sales   (48.0) (17.0)  (40.4)
                        _____  _____   _____    _____   _____  _____
                        526.0  436.0   862.4     46.4    32.3   75.1
                        =====  =====   =====    =====   =====  =====

  The analysis shown below is based on the location of the customer:
                                                 Turnover
                          Six months  Six months     Year
                                2000        1999     1999
                                  £m          £m       £m
  United Kingdom                42.6        35.9     74.0
  Rest of Europe               162.9       103.9    211.0
  The Americas                 223.0       179.5    364.4
  Far East and Australasia      76.6        54.5    110.7
  Middle East and Africa         8.3         7.7     16.0
                               _____       _____    _____
                               513.4       381.5    776.1
  Discontinued operations       12.6        54.5     86.3
                               _____       _____    _____
                               526.0       436.0    862.4
                               =====       =====    =====

3.Redundancy and reorganisation costs

  The redundancy and reorganisation costs of £3.9 million incurred in
  the first six months of 2000 (1999 : £14.4 million) have been shown
  separately as exceptional due to the amounts involved.

4.Other exceptional items

  In 2000, the exceptional profit arose principally on the sale of
  the Dulmison group of companies whereas in 1999, it resulted
  principally from the sale of the Chemical Products business.


5.Taxation
                          Six months  Six months     Year
                                2000        1999     1999
                                  £m          £m       £m
  United Kingdom taxes           3.6         7.5      5.5
  Overseas taxes                11.7        14.7     27.2
                               _____       _____    _____
  Total taxation                15.3        22.2     32.7
                               =====       =====    =====

  The total taxation charge for the six months to 4 July 2000 of
  £15.3 million (1999 : £22.2 million) includes tax on exceptional
  items of £2.3 million (1999 : £8.8 million), made up of £2.8
  million (1999 : £13.7 million) on the disposal of businesses and
  £0.5 million credit (1999 : £4.9 million credit) on the
  redundancy and reorganisation costs.

  The interim taxation charge is calculated by applying the
  Directors' best estimate of the annual tax rate to the profit for
  the period.


6.Earnings per Ordinary share
a.Basic earnings                      Six months  Six months   Year
                                            2000        1999   1999
                                              £m          £m     £m
  Group profit after tax                    41.2        35.7   61.5
  Equity minority interests                 (0.8)       (0.8)  (0.8)
  Preference dividend                       (1.0)       (1.1)  (2.1)
                                           _____       _____  _____
  Basic earnings                            39.4        33.8   58.6
  Goodwill amortisation                      3.1         0.7    2.0
                                           _____       _____  _____
  Basic earnings excluding
   goodwill amortisation                    42.5        34.5   60.6
                                           =====       =====  =====
  Basic earnings per ordinary share         17.0p       14.6p  25.3p
                                           =====       =====  =====
  Basic earnings per ordinary share
   excluding goodwill amortisation          18.3p       14.9p  26.1p
                                           =====       =====  =====

b.Underlying earnings

  The Directors have disclosed an underlying earnings per share as,
  in their opinion, this better reflects the underlying performance
  of the Group and assists comparison with the results of earlier
  years.
                                                  Six     Six
                                               months  months   Year
                                                 2000    1999   1999
                                                   £m      £m     £m
  Earnings relating to ordinary shareholders     39.4    33.8   58.6
  Add exceptional redundancy and reorganisation   3.9    14.4   17.5
  Less attributable taxation credit              (0.5)   (4.9)  (5.4)
  Less other exceptional items                  (18.3)  (32.8) (32.6)
  Add attributable taxation charge                2.8    13.7   13.7
                                                _____   _____  _____
  Underlying earnings                            27.3    24.2   51.8
                                                =====   =====  =====
  Underlying earnings per ordinary share         11.8p   10.4p  22.4p
                                                =====   =====  =====
c.Diluted earnings
                                                  Six     Six
                                               months  months   Year
                                                 2000    1999   1999
                                                   £m      £m     £m
  Group profit after tax                         41.2    35.7   61.5
  Equity minority interests                      (0.8)   (0.8)  (0.8)
  Preference dividends as calculated
   for this purpose under FRS14                  (1.0)   (1.1)    -
                                                _____   _____  _____
  Diluted earnings                               39.4    33.8   60.7
                                                =====   =====  =====
  Diluted earnings per share                     17.0p   14.6p  25.1p
                                                =====   =====  =====
d.Number of shares

  The weighted average number of ordinary shares used in the
  calculation of earnings per share are as follows:
                                      Six          Six
                                   months        months          Year
                                     2000          1999          1999
  For basic earnings per 
  ordinary share, basic earnings
  excluding goodwill amortisation
  and underlying earnings per
  ordinary share
   Weighted average 
   number of shares           231,871,750   231,751,255   231,793,066

  For diluted earnings
  per ordinary share
   Relevant employee
   share options                  185,595        37,051       113,035
   Cumulative Convertible
   Redeemable Third Preference
   shares                           n/a           n/a      10,272,343
                              ___________   ___________   ___________
  Weighted average ordinary
   shares for fully diluted 
   earnings per share         232,057,345   231,788,306   242,178,444
                              ===========   ===========   ===========

7.Reconciliation of operating profit to 
  net cash inflow from operating activities
                                                 Six      Six
                                              months   months   Year
                                                2000     1999   1999
                                      Discon-
                           Continuing  tinued  Total    Total   Total
                                   £m      £m     £m       £m      £m
  Operating profit               46.0     0.4   46.4     32.3    75.1
  Depreciation                   21.9     0.5   22.4     20.0    39.7
  Amortisation of
  goodwill                        3.1      -     3.1      0.7     2.0
  Loss on sale/write-
  off of plant and
  machinery                       0.2     0.5    0.7      1.2     1.4
  (Increase)/decrease
  in stocks                      (8.2)   (0.5)  (8.7)    (4.8)   (4.1)
  (Increase)/decrease
  in debtors                    (13.3)    0.7  (12.6)    (8.3)    0.6
  Increase/(decrease)
  in creditors                    2.7    (5.7)  (3.0)   (11.6)  (11.7)
  (Decrease)/increase
  in provisions                  (2.4)   (1.1)  (3.5)    (0.5)   (1.1)
                                _____    _____  _____    _____  _____

  Net cash inflow from
  operating activities           50.0    (5.2)  44.8     29.0   101.9
                                =====    =====  =====    =====  =====

8.Current liabilities

  Current liabilities include bank loans and overdrafts of £177.9 
  million (4 July 1999 : £94.1 million; 4 January 2000 : £89.8 
  million).  The increase arises from the movement of the 
  Vacuumschmelze acquisition funding from long term to short term 
  borrowings.  This financing is currently being re-negotiated.
  
  

Independent review report of the auditors to The Morgan Crucible
Company plc


  We have been instructed by the Company to review the financial
  information set out on pages 6 to 11 and we have read the other
  information contained in the interim report and considered whether
  it contains any apparent misstatements or material inconsistencies
  with the financial information.

Directors' responsibilities
  The interim report, including the financial information contained
  therein is the responsibility of, and has been approved by, the
  Directors.  The Listing Rules of the Financial Services Authority
  require that the accounting policies and presentation applied to
  the interim figures should be consistent with those applied in
  preparing the preceding annual accounts except where any changes,
  and the reasons for them, are disclosed.

Review work performed
  We conducted our review in accordance with guidance contained in
  Bulletin 1999/4 issued by the Auditing Practices Board. A review
  consists principally of making enquiries of group management and
  applying analytical procedures to the financial information and
  underlying financial data, and based thereon, assessing whether
  the accounting policies and presentation have been consistently
  applied unless otherwise disclosed.  A review excludes audit
  procedures such as tests of controls and verification of assets,
  liabilities and transactions. It is substantially less in scope
  than an audit performed in accordance with Auditing Standards and
  therefore we do not express an audit opinion on the financial
  information.

Review conclusion
  On the basis of our review we are not aware of any material
  modifications that should be made to the financial information as
  presented for the six months ended 4 July 2000.






                                                                    
  London                                               ERNST & YOUNG
  11 September 2000                               Registered Auditor







This Interim Statement will be dispatched to all registered holders of
Ordinary shares and Preference shares.  Copies of this statement may
be obtained from the Secretary at the Registered Office of the
Company, Morgan House, Madeira Walk, Windsor, Berkshire, SL4 1EP.