HAMP.L Regulatory News (HAMP)

21 Aug 2007 07:00

Hampson Industries PLC21 August 2007 Hampson Industries PLC Interim Management Statement Hampson Industries PLC ("Hampson" or "the Group"), the international aerospaceand precision engineering group today issues its first Interim ManagementStatement as required by rule 4.3 of the Disclosure and Transparency Rules ofthe UK Listing Authority. Aerospace Demand in the Group's core aerospace markets remains very buoyant. The periodfrom 1 April to 30 June 2007 was the best second calendar quarter ever foraircraft order intake in the commercial aerospace market. At the end of June,the combined order book of the large commercial aircraft manufacturers stood atan all-time high of 5,699 aircraft, an increase of 37% compared to the sameposition last year. At current rates, this represents over six year's worth ofaircraft production, which is a record for the industry. Large aircraft engine orders also stood at a record level at 30 June 2007, withan increase of nearly 2,800 engines (34%) compared to the same position lastyear. This figure does not take into account a further 500 aircraft recentlyordered for which engines have yet to be specified. Demand from our militaryaerospace customers has also remained strong in the period and additionallysales of anti-ballistic transparencies for fitment to armoured US militaryvehicles have increased significantly. Production of the Eclipse 500 Very Light Jet is starting to increaseprogressively although it is likely that deliveries of aircraft to customers byEclipse Aviation in 2007/08 will be lower than previous guidance. The Group hasin place processes to mitigate the financial consequences of any such shortfall.The Eclipse order book remains strong and is reported at just under 2,700aircraft, including orders and options. Against this positive market background, both the Aerospace Components &Structures and Composites & Transparencies divisions generated improved resultscompared to the same period of the previous year. With the exception of theEclipse programme, results in these businesses have also been ahead ofmanagement expectations to date. In particular, Composites Horizons Inc. whichwas acquired in January 2007, continues to trade strongly, performing at betterthan expected levels. Specialist Engineering Market demand for automotive turbochargers remains solid. Operationalimprovement activities have been on-going throughout the period and this hasresulted in some additional costs. Together with new programme starts, this hascreated short term loss of efficiency. Although results for the division havetherefore fallen below management expectations to date, significant improvementsare expected to be seen in the second half. The disposal of the non-core Precision Industrial division for a considerationof £3.97 million was announced on 27 June 2007. For the period in the currentyear up to the date of disposal, the division reported a small trading loss. Outlook Demand in the global commercial aerospace market is expected to remain strongfor the foreseeable future with OEM production rates continuing to rise.Military aerospace demand is also expected to remain robust. Against thisbackground, the Group's principal aerospace businesses have started the yearstrongly and are expected to continue to perform at these levels for the rest ofthe year. The Group's order book remains strong and the Board will continue topursue opportunities for further growth. Results for the automotiveturbocharger business are expected to show progressive improvement throughoutthe remainder of the year with a marked improvement in the second half. Average dollar/sterling exchange rates used to translate the Group's USdollar-derived trading profits in the year to date have weakened byapproximately 5% compared to the average rate used for the year ended 31 March2007. As with other UK companies with North American interests, the sterlingvalue of the Group's results will therefore be impacted accordingly if ratescontinue to prevail at these levels for the balance of the current year. Ends. Further information: Kim Ward, Chief Executive +44 (0)1384 472941Howard Kimberley, Finance Director +44 (0)1384 472946Jonathan Gollins/Marylene Guernier, M:Communications +44 (0)207 153 1269 About Hampson: Hampson Industries PLC is listed on the main market of the London Stock Exchange(Symbol: HAMP). The Group's operations are structured into three segments,operating from 14 manufacturing facilities spanning three continents. Throughits international operations, the Group provides leading-edge, fully-integratedengineering and manufacturing solutions for: • 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 aerospaceactivities, the balance from the specialist automotive markets. Hampson has a clear growth strategy based on both organic and externalinvestment. Over the last two years, the group has completed four acquisitionsin the USA (Texstars Inc, Coast Composites Inc, Lamsco West Inc. and CompositesHorizons Inc) as well as invested $20m in a new purpose-built aerospace assemblyand high speed machining cell to support the revolutionary new Eclipse 500 VeryLight Jet programme, to which it is one of the major supply partners(www.eclipseaviation.com). Recent investment in a new manufacturing facility in Bangalore is a core elementof the Group's growth strategy and marks Hampson's commitment to developing acentre of manufacturing expertise on the Asian continent. The Hampson group employs over 1,700 people worldwide. For more information onHampson: www.hampsongroup.com This announcement contains forward-looking statements that are based on currentexpectations or beliefs, as well as assumptions about future events. Theseforward-looking statements can be identified by the fact that they do not relateonly to historical or current facts. Forward-looking statements often use wordssuch as anticipate, target, expect, estimate, intend, plan, goal, believe, will,may, should, would, could or other words of similar meaning. Undue relianceshould not be placed on any such statements because they speak only as at thedate of this document and, by their very nature, they are subject to known andunknown risks and uncertainties and can be affected by other factors that couldcause actual results, and Hampson's plans and objectives, to differ materiallyfrom those expressed or implied in the forward-looking statements. There are a number of factors which could cause actual results to differmaterially from those expressed or implied in forward looking statements. Amongthe factors that could cause actual results to differ materially from thosedescribed in the forward-looking statements are, increased competition, the lossof or damage to one or more key customer relationships, changes to customerordering patterns, delays in obtaining customer approvals for engineering orprice level changes, the failure of one or more key suppliers, the outcome ofbusiness or industry restructuring, the outcome of any litigation, changes ineconomic conditions, currency fluctuations, changes in interest and tax rates,changes in raw material or energy market prices, changes in laws, regulations orregulatory policies, developments in legal or public policy doctrines,technological developments, the failure to retain key management, or the keytiming and success of future acquisition opportunities or major investmentprojects. Hampson undertakes no obligation to revise or update any forward lookingstatement contained within this announcement, regardless of whether thosestatements are affected as a result of new information, future events orotherwise, save as required by law and regulations. This information is provided by RNS The company news service from the London Stock Exchange