8 October 2012 – trading statement
A disappointing trading statement has been issued by Cookson Group this morning. Although the performance at Performance Materials and Precious Metals Processing has been in line with expectations, the Engineered Ceramics division has seen a weak third quarter performance. As a result the full year results are going to miss previous forecasts, although the group is taking action to reduce its cost base. The group is continuing with its strategic review, which could result in a demerger or separation of the main divisions and news on this is expected before the end of the year. Although this announcement is disappointing, the shares continue to have significant potential upside in the evnt of a demerger especially after today’s fall and we therefore believe that they remain a BUY.