HAMP.L Regulatory News (HAMP)

4 Apr 2008 07:01

Hampson Industries PLC04 April 2008 4 April 2008 Hampson Industries PLC Trading Update Hampson Industries PLC ("Hampson" or "the Group"), the international aerospaceand precision engineering group, today issues a pre-close update on currenttrading. Aerospace Demand for new commercial aircraft remains at an all time high. February 2008saw a further 253 orders taken by Boeing and Airbus for large commercial jets,taking the total for the first two months of the current calendar year to date,to 556. On this basis, the combined backlog for new large commercial aircraft atthe end of the first quarter of this calendar year is expected to set a newquarterly record, as well as represent the 15th consecutive quarterly increase. Against this background, trading in Hampson's aerospace division remained strongto the financial year end, with both volume and efficiency-driven improvementscontinuing to benefit results, in line with our expectations. As reported in the Group's Interim Management Statement ("IMS") issued on 15February 2008, demand in the commercial and military aerospace market isexpected to continue to be robust for the foreseeable future. The record globalcommercial aerospace backlog, combined with the increasing use of carboncomposite materials in airframe and aero-engine manufacture, leaves the Group'saerospace businesses very well positioned to continue to generate attractivegrowth. In particular, demand for large tooling systems for compositeaerostructures is expected to continue to increase markedly over the next fiveyears as a result of requirements for initial and production rate tooling on theAirbus A350XWB and other new and derivative commercial and military aerospaceprogrammes. Automotive Following major operational improvements including the commissioning of newequipment in the Group's Skelmersdale (UK) facility, profitability was restoredin the second half in the Automotive Turbocharger division. In particular, theimprovement in results reported in the IMS has been sustained throughout thesecond half, as anticipated. The division has also won two major contracts for the supply of precision shaftand turbine wheel assemblies that are expected to be worth in aggregate, over£19m, commencing in the year ending 31 March 2009. Together these factorsprovide us with the foundations for an expected strong performance from thisdivision in 2008/09 and beyond. Dividend In light of current trading and the positive general outlook, the Directorsexpect, subject to no unforeseen circumstances arising, to recommend anincreased final dividend of 1.5p, equivalent to a pay-out of 2.0p for the fullyear ended 31 March 2008. The Board expects to maintain a progressive dividendthereafter. Ends. Further information: Kim Ward, Chief Executive +44 (0)1384 472941Howard Kimberley, Finance Director +44 (0)1384 472946Marylene Guernier, M:Communications +44 (0)20 7153 1269 About Hampson Industries: Hampson Industries PLC is listed on the main market of the London Stock Exchange(Symbol: HAMP). The Group's operations are structured into three businesssegments, serving primarily the global commercial and military aerospace andspecialist engineering markets from manufacturing facilities in the UK, NorthAmerica and India. Approximately 85% of the Group's sales are derived from its aerospaceactivities, the balance from the market for automotive turbocharger components. The Hampson group employs over 1,900 people worldwide. For more information onHampson: www.hampsongroup.com Cautionary Statement: 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, is confident, or other words of similar meaning.Undue reliance should not be placed on any such statements because they speakonly as at the date of this document and, by their very nature, they are subjectto known and unknown risks and uncertainties and can be affected by otherfactors that could cause actual results, and Hampson's plans and objectives, todiffer materially from those expressed or implied in the forward-lookingstatements. 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