Morgan Crucible reports slower start to year

Industrial materials maker Morgan Crucible stuck to its full year expectations despite a slower start to the year than it forecast.

The firm said revenue in the first four months of 2012 at reported rates was marginally below the comparable period last year.

Anticipated growth in the company's engineered materials division was hit by both a downturn in the solar market and the slowing of the Chinese economy.

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These phenomena had impacted its high temperature product range as well as its Chinese auto-consumer and wind businesses, Morgan said.

The firm added that as the business entered the second quarter there were signs of the Chinese market beginning to improve, although it did not see a near term pick up in the solar market.

Morgan said its technical ceramics business had made a good start to 2012.

The positive market conditions seen in 2011 generally continued, with aerospace and general industrial equipment markets in particular remaining robust, it said.

"Despite a slower start to the year in some of our markets the group continues to progress the strategy of focussing on positive mix change in our innovative and differentiated technologies and developing businesses in dynamic growth economies," the company said in a statement.

"This, together with further operational improvements, positions the group to make further progress in 2012 against the three year financial goals that were announced in early 2011."