Cookson takes a turn for the better

SHARES in Cookson jumped more than 10% in early trading after the group said it may have seen the bottom of the downturn in the electronics industry in the fourth quarter of last year. Chief executive Stephen Howard also said weekly sales levels were maintained in the first eight weeks of 2002.

Cookson's specialised products for the steel industry have benefited from an upturn in US steel production in January and February but there are concerns about European steel production. The shares later narrowed their gains to end 5 1/2p higher at 78 1/2p.

Last year's downturn led to headline pre-tax profits slumping to £6.7m from £197.7m the year before. There is no final dividend.

Good cashflow has enabled the group to cut its £750m debt by £61m. It has also arranged a £450m bank facility. Howard said he believed that any economic upturn would be swift, particularly in the US, and said the group was prepared for this.