Ist Quarter Trading Update

Cookson Group PLC
06 May 2005

6 May 2005


COOKSON GROUP plc - FIRST QUARTER 2005 TRADING UPDATE

Group

Turnover for the first quarter of 2005 was £387 million which was 1% lower than
the same quarter a year ago with increases by the Ceramics and Electronics
divisions being offset by a decrease in the Precious Metals division. Group
operating profit before exceptional items of £21 million in the first quarter
was £2 million lower than the first quarter of 2004 with an increase by the
Ceramics division being offset by lower year-on-year contributions from the
Electronics and Precious Metals divisions and from Joint Ventures.

Profit before tax and exceptional items of £13 million was £1.5 million lower
than the first quarter last year at reported exchange rates. Profit before tax
but after exceptional items was £10 million which was £6 million higher than
last year. The charge for exceptional items consisted of £2 million for
restructuring initiatives and a £1 million write-off of unamortised bank
financing fees following the successful renegotiation of the Group's banking
facilities in March 2005.

Ceramics

Steel production, to which approximately 70% of the Ceramics division's
activities are linked, was virtually unchanged in its two largest markets -
NAFTA and Europe - but increased by 14% in the fast growing Asia-Pacific region
mainly due to a 24% rise in China. As a consequence of both increased volumes
and higher average selling prices - primarily to recover raw material cost
increases - turnover for the Ceramics division's Steel sector rose by 7% in the
first quarter of 2005 over 2004.

Conditions in the Foundry and Industrial Processes sectors were generally sound
and, collectively, turnover for these sectors was unchanged over 2005. Turnover
in the Glass sector - excluding that of the European brick businesses sold last
year - was up on last year. Low margin construction projects, where the division
provides installation services to certain customers for re-lining work,
decreased from the relatively high levels last year.

As a consequence, the Ceramics division's turnover of £175 million was 3% higher
than the first quarter last year and up 6% on a like-for-like basis, i.e.
excluding turnover of the European brick businesses. The increase in sales
volumes and prices, together with lower overhead costs, more than offset higher
raw material costs resulting in the division's operating profit rising £1.5
million to £13.5 million in the first quarter.

The plant rationalisation programme in the NAFTA region, which commenced in
2004, is nearing completion and the newly installed capacity in Mexico will be
fully commissioned by the end of the first half. The planned restructuring of
the division's South African operations is now underway and includes the
relocation of all activities on to a single site. An operating exceptional
charge of £1 million was raised in the first quarter for both of these
initiatives and the financial benefits will begin to be fully derived from the
third quarter of 2005.

Electronics

Turnover for the Electronics division of £152 million was 4% higher than the
same quarter last year but, excluding the impact of passing on higher tin
prices, turnover was up by 1%. Consistent with last year, activity levels in the
Asia-Pacific region were buoyant. In both the USA and Europe, however,
underlying demand weakened in January and February though stabilised in March.

Operating profit for the Electronics division for the first quarter of £7
million was £2 million lower than 2004.  This shortfall was primarily due to
lower profits from the Chemistry sector's semi-conductor copper activities and
from the Laminates sector's European operations. Collectively, these areas
contributed a £3 million operating profit shortfall vs. last year.

The performance of each sector was as follows:

-          Assembly Materials: first quarter turnover of £67 million was 10%
ahead of last year; however, excluding the impact of the c.30% year-on-year
increase in the price of tin that was substantially passed on to customers ,
turnover for the sector  increased by 2%. Operating profit was virtually
unchanged in comparison with last year with profit growth in the sector's core
activities being held back by lower sales and profits for high margin
semi-conductor packaging products.

-          Chemistry: sales of £52 million for the first quarter were 4% lower
than last year for two principal reasons. Firstly, a decision was made to forego
sales of certain low margin precious metals decorative coating products.
Secondly, the sector experienced temporary de-stocking by its distributor of
high margin copper damascene products for the semi-conductor market following a
build up in inventory in the fourth quarter of 2004. This was exacerbated by the
fact that there was an exceptionally high off-take of copper damascene in the
first quarter last year when the distributor was also building inventory. The
underlying demand for copper damascene, however, remains robust. Profitability
was therefore negatively affected by these largely one-off events and operating
profit was, as a result, lower than in the first quarter last year.

-          Laminates: first quarter sales of £33 million were 7% higher than the
same quarter last year, with strong growth in the Asia-Pacific region being
pegged back by sales declines in the USA and, in particular, the European
operations. The sector, however, operated marginally below break-even in the
first quarter of the year, with virtually all of the profit shortfall vs. last
year arising from the European operations.  As outlined in the 2004 Preliminary
Results announcement in March, the manufacturing site in Germany is in the
process of being downsized under a Social Plan agreed with local unions. This
will result in the production of laminates for the European market being centred
on the plant in Sweden. The exceptional charge for this initiative of £7 million
was taken in December 2004 and cost savings of some £3 million per annum will
begin to accrue from the second half of the year.  Further improvements in
profitability are also expected to arise when production of the GETEK(R) range
begins to ramp up in both the USA and Asia-Pacific.

Precious Metals

Trading conditions for the Precious Metals division remained difficult in the
first quarter following a weak fourth quarter 2004 holiday buying season. In the
division's US activities, sales were well down on a relatively buoyant first
quarter last year with customer re-stocking levels at a low ebb. For the
division's European operations, sales were also well down on the first quarter
of 2004 due to both a  weak retail environment in the UK and to some loss of
market share in France following the significant downsizing in 2004 of its
manufacturing facilities. As a consequence, turnover for the division of £60
million and net sales value of £23 million (turnover less precious metals
content) were down 22% on the first quarter of 2004.

Despite the sharp fall in turnover and net sales value, the negative impact on
profits was mitigated by the significant benefits of the recently completed
restructuring of the European operations and operating profit for the first
quarter of £0.5 million was £0.5 million lower than last year.

In response to the weak market conditions in the US and to Tiffany increasing
its level of in-house manufacture, management is now implementing an 8%
reduction in its US workforce and consolidating the majority of its North
American activities on to a single site, realising annualised savings of £3
million which will begin to flow from the second half of the year. This has
resulted in a one-off exceptional charge of £1 million in the quarter.

Joint Ventures

Attributable profits after tax of the Group's Joint Ventures were nil in the
first quarter of 2005 with the Chemistry sector's Japanese joint venture
accounting for all of the £1 million shortfall over the first quarter of 2004.
This shortfall was anticipated following an exceptionally high level of
equipment sales and profits in the first quarter of 2004.

Outlook

Trading conditions in the steel and electronics industries are expected to
remain basically unchanged for the second quarter and management has assumed a
similar pattern for the remainder of the year. For the Precious Metals division,
it has been assumed that market conditions will not deteriorate any further and
that there will be a more normal holiday buying season. Based on these
assumptions, and in light of the cost saving and market share initiatives both
currently underway and planned for the second half of the year, the expectation
for an improvement in profitability for the year as a whole remains unchanged.

A conference call for shareholders and analysts will be held at 10:00am UK time
on Friday 6th May 2005.  The call will be broadcast live on
www.cooksongroup.co.uk.

Shareholder/analyst enquiries:
Nick Salmon, Chief Executive                            020 7061 6500
Dennis Millard, Group Finance Director                  020 7061 6500

Media enquiries:
John Olsen, Hogarth Partnership                         020 7357 9477


About Cookson Group

Cookson Group is a leading materials science company which provides materials,
processes and services to customers worldwide. The Group's operations are formed
into three divisions - Ceramics, Electronics and Precious Metals. The Ceramics
division is the world leader in the supply of advanced flow control and
refractory products and systems to the iron and steel industry and is also a
leading supplier of refractory lining materials for iron and steelmaking and
other industrial processes. The Electronics division is a leading manufacturer
and supplier of materials and services to the electronics industry, primarily
serving fabricators and assemblers of printed circuit boards, assemblers of
semiconductor packaging and the electrical and industrial markets. The Precious
Metals division is a leading supplier to the jewellery industry of fabricated
precious metals products.

Headquartered in London, Cookson employs some 16,000 people in more than 35
countries and sells its products in over 100 countries

Cookson Group plc, 265 Strand, London WC2R 1DB
Tel: [phone] Fax: [phone]
www.cooksongroup.co.uk



NOTES ON FINANCIAL INFORMATION

The financial information set out in the above announcement is preliminary and
unaudited and profits have been rounded off to the nearest half million pounds.
The financial information has been compiled under International Financial
Reporting Standards ('IFRS'). A reconciliation between IFRS and UK GAAP for the
first quarters of 2004 and 2005 is set out below.

Unless stated otherwise, operating profit is stated before exceptional items(1)
and turnover and operating profit comparisons are at constant exchange rates,
i.e. 2004 results have been restated using 2005 exchange rates; nevertheless,
the impact of exchange rate variations on the Group's turnover and operating
profit has not been material.

Reconciliation between IFRS and UK GAAP: Q1 2005 and Q1 2004
                                                                                      Q1 2005          Q1 2004
                                                                                           £m               £m

Turnover -  Under UK GAAP                                                                 395              404

Less: turnover of Joint Ventures (IAS 1)                                                  (8)             (13)

Turnover - under IFRS                                                                     387              391

Operating profit before exceptional items and amortisation of
intangibles under UK GAAP                                                               22.0             24.0
                                                                                        

IFRS adjustments                                                                        (1.5)            (1.5)
      Share option charge (IFRS 2)                                                      (1.0)            (0.5)
      Joint Ventures: profit stated after tax and interest (IAS 1)                         -             (1.0)
      Others, including pension and holiday pay (IAS 19) and marking-to-market          (0.5)               - 
      tin hedging contracts (IAS 39) (2)

Operating profit before exceptional items(1) and amortisation of                         20.5            22.5
intangibles under IFRS

Net interest charge under IFRS                                                          (7.5)            (8.0)
      Net interest charge under UK GAAP                                                 (6.5)            (6.5)
      Add back: deferred income on interest rate swaps (IAS 39) (2)                     (1.0)            (1.5)

Profit before tax and exceptional items(1) and amortisation of
intangibles under IFRS                                                                   13.0             14.5


(1) Exceptional items as defined under UK GAAP.

(2) Based on early adoption of IAS 39, i.e. with effect from 1 January 2004.



FORWARD LOOKING STATEMENTS

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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