Hampson Industries
Interim Management
Statement
Hampson Industries
Aerospace
Demand in the Group’s core aerospace markets remains very
buoyant. The period from 1 April to
Large aircraft engine orders also stood at a record level at
Production of the Eclipse 500 Very Light Jet is starting to
increase progressively although it is likely that deliveries of aircraft to
customers by Eclipse Aviation in 2007/08 will be lower than previous
guidance. The Group has in place
processes to mitigate the financial consequences of any such shortfall. The Eclipse order book remains strong and is
reported at just under 2,700 aircraft, including
orders and options.
Against this positive market background, both the Aerospace
Components & Structures and Composites & Transparencies divisions
generated improved results compared to the same period of the previous
year. With the exception of the Eclipse programme, results in these businesses have also been ahead
of management expectations to date. In
particular, Composites Horizons Inc. which was acquired in January 2007,
continues to trade strongly, performing at better than expected levels.
Specialist Engineering
Market demand for automotive turbochargers remains solid. Operational improvement activities have been
on-going throughout the period and this has resulted in some additional costs. Together with new programme
starts, this has created short term loss of efficiency. Although
results for the division have therefore fallen below management expectations to
date, significant improvements are expected to be seen in the second half.
The disposal of the non-core Precision Industrial division
for a consideration of £3.97 million was announced on
Outlook
Demand in the global commercial aerospace market is expected
to remain strong for the foreseeable future with OEM production rates
continuing to rise. Military aerospace
demand is also expected to remain robust.
Against this background, the Group’s principal aerospace businesses have
started the year strongly and are expected to continue to perform at these
levels for the rest of the year. The Group’s
order book remains strong and the Board will continue to pursue opportunities
for further growth. Results for the
automotive turbocharger business are expected to show progressive improvement
throughout the remainder of the year with a marked improvement in the second
half.
Average dollar/sterling exchange rates used to translate the
Group’s US dollar-derived trading profits in the year to date have weakened by
approximately 5% compared to the average rate used for the year ended
Ends.
Further information:
Kim Ward, Chief
Executive +44
(0)1384 472941
Howard Kimberley,
Finance Director +44
(0)1384 472946
Jonathan Gollins/Marylene Guernier, M:Communications +44
(0)207 153 1269
About Hampson:
Hampson Industries
·
Advanced
aero structural components and assemblies
·
Performance-critical
components for gas turbine engines
·
Close
tolerance components & rotating assemblies for automotive turbochargers
·
Precision
tooling systems for large, composite aero structures
Approximately 85% of the
continuing Group’s sales are derived from its aerospace activities, the balance
from the specialist automotive markets.
Hampson has a clear growth strategy based on both organic
and external investment. Over the last
two years, the group has completed four acquisitions in the USA (Texstars Inc,
Coast Composites Inc, Lamsco West Inc. and Composites Horizons Inc) as well as
invested $20m in a new purpose-built aerospace assembly and high speed
machining cell to support the revolutionary new Eclipse 500 Very Light Jet programme, to which it is one of the major supply partners
(www.eclipseaviation.com).
Recent investment in a new manufacturing facility in
The Hampson group employs over 1,700 people worldwide. For more information on Hampson: www.hampsongroup.com
This announcement contains forward-looking statements that
are based on current expectations or beliefs, as well as assumptions about
future events. These forward-looking statements can be identified by the fact
that they do not relate only to historical or current facts. Forward-looking
statements often use words such as anticipate, target, expect, estimate,
intend, plan, goal, believe, will, may, should, would, could or other words of
similar meaning. Undue reliance should not be placed on any such statements
because they speak only as at the date of this document and, by their very
nature, they are subject to known and unknown risks and uncertainties and can
be affected by other factors that could cause actual results, and Hampson's plans and objectives, to differ materially from
those expressed or implied in the forward-looking statements.
There are a number of factors which could cause actual
results to differ materially from those expressed or implied in forward looking
statements. Among the factors that could cause actual results to differ
materially from those described in the forward-looking statements are,
increased competition, the loss of or damage to one or more key customer relationships,
changes to customer ordering patterns, delays in obtaining customer approvals
for engineering or price level changes, the
failure of one or more key suppliers, the outcome of business or industry
restructuring, the outcome of any litigation, changes in economic conditions,
currency fluctuations, changes in interest and tax rates, changes in raw
material or energy market prices, changes in laws, regulations or regulatory
policies, developments in legal or public policy doctrines, technological developments,
the failure to retain key management, or the key timing and success of future
acquisition opportunities or major investment projects.
Hampson undertakes no obligation to revise or update any
forward looking statement contained within this announcement, regardless of
whether those statements are affected as a result of new information, future
events or otherwise, save as required by law and regulations.