Morgan Advanced backs full-year guidance as Q1 revenues rise

5th May 2022 09:54

(Sharecast News) - Morgan Advanced Materials backed its full-year guidance on Thursday as it posted a rise in first-quarter revenues.

In the first three months of the year, group revenues were up 10.9% on an organic constant currency basis, compared to the same period last year.

Revenue from the thermal ceramics segment was up 8.8%, while molten metal systems and electrical carbon saw revenues jump 16.1% and 12.8%, respectively. In the seals and bearings division, revenues rose 6.6%, while technical ceramics saw a 14% increase.

The company hailed a strong start to the year, supporting guidance for full-year organic revenue growth of 4% to 7% in 2022.

Morgan expects to see a moderation of growth rates as the year progresses, "reflecting challenges in the wider economy".

"We will see higher inflation in 2022 and expect higher pricing and continuous improvement to offset this," it said. "We expect our margins to expand further reflecting the drop-through on our organic growth and the remaining full-year benefits from our restructuring programme."

Chief executive Peter Raby said: "With our continuing investments in new products and new technologies, we plan to increase further our exposure to our faster growing segments (clean energy, clean transportation, semiconductors and healthcare), and to continue to win in our core markets."