Morgan Crucible profits fire up

16 February 2012

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16 February 2012 | Adam Leach

Advanced materials group Morgan Crucible reported record profits yesterday, which it attributed to lower costs and increased sales in emerging economies such as China.

The company, which supplies complex components for use in a range of sectors, including healthcare where its products are used to manufacture defibrillators, pacemakers and hearing implants, saw its operating profit for the year jump to £141.5 million from £101.6 million a year ago, an increase of 39.3 per cent.

CEO Mark Robertshaw, said: “The group’s continuing strategy of focusing on the right growth markets and the right growth geographies with innovative, differentiated, added-value products drove revenue and underlying operating profit to record levels in 2011.

“Our continued expansion into the dynamic growth economies of the world such as China, India and Latin America also made significant strides in 2011.”

Both divisions of the group, Morgan Engineered Devices (MED) and Morgan Ceramics (MC), reported increased profit margins. The improved profitability in MED came as activity increased in emerging markets. Last year’s report explained that one of the five key strategic priorities for the group was: “To focus on higher growth, higher margin, non-economically cyclical markets.”

This week’s report explained that the division: “Continues to see the benefits of the extensive operational efficiency initiatives taken in previous years, with improved margins being achieved from moves to low-cost regions such as Mexico, China and Hungary and from the ongoing Operational Excellence programme.”

Revenues in the emerging markets for the division also saw strong growth, increasing by 23 per cent and taking a 25 per cent share of overall sales at the company.

On the back of the strong performance Morgan Crucibles reported that it expects to make further progress in 2012. In 2011, the company targeted doubling pre-tax profits by 2013.

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