COOKSON, the industrial materials group, issued a profits warning after its ceramics division was hit by the sharp slowdown in <link _top>steel production.
The firm's shares closed down 24.4 per cent, or 42p, at 130p after Cookson said this year's performance was likely to be below previous expectations.
Cookson said its overall result was still likely to be significantly ahead of 2007 thanks to the weakening of sterling and its acquisition of Foseco, a <link _top>foundry supplier.
Cookson issued a profits warning, blaming the economic situation and the cutbacks in China for weak market conditions it expects will continue into 2009.
The industrial materials group – which is exposed to both the downturn in the steel industry, through its ceramics division, and in consumer spending, through its electronics and precious metals businesses – saw its shares plunge 24.4 per cent to close at 130p on Thursday.
Overall performance for this year will still be "significantly ahead" of 2007, boosted by the acquisition of the Foseco <link _top>foundry business in October 2007 and by currency translation gains. But the results will not meet management expectations, the group said.
"In recent weeks the group has started to see clear evidence of the global financial turmoil impacting its end-markets, particularly global steel production," Cookson said. "Trading performance in 2009 will be dependent upon the depth and duration of the global economic slowdown."
