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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.