Cookson profit up on ceramics business

LONDON (Reuters) - Industrial materials group Cookson (CKSN.L) beat forecasts with a 45 percent rise in first-half profit, driven by its ceramics business and a recent acquisition, and was upbeat about its full-year prospects.

The firm, whose main ceramics business supplies the steel, foundry and solar energy industries, said on Tuesday it made an underlying profit before tax of 99.1 million pounds in the first half of its financial year.

Forecasts ranged from 81.7 million to 95.8 million pounds in a Reuters poll of four analysts.

Following its purchase of Foseco earlier this year, Cookson makes about 75 percent of its profits from its ceramics business, which is mostly dependent on global infrastructure spending. This has reduced its exposure to its more cyclical electronics and jewellery businesses.

"For the second half, continued growth in the global production of steel, foundry castings and solar panels should support a further strong improvement in the performance of the Ceramics division, benefiting from a full period contribution from Foseco and from our continuing investment in capacity in higher growth, higher margin areas," it said in a statement.

Cookson proposed an interim dividend of 5.85 pence a share, up 38 percent on the year.

Its shares have outperformed the UK general industrials index .FTASX2720 by 8 percent over the past year. They closed at 600 pence on Monday, valuing the business at about 1.3 billion pounds.

(Reporting by Mark Potter)