StockMarketWire.com - Advanced materials manufacturer Morgan Advanced Materials said its year-to-date sales had dropped 8.8% on an organic and constant currency basis and that it overhauled its cost base.

The company said the fall in sales reflected a 3.2% decline in the first quarter, largely driven by shut-downs in China.

That was followed by a 19.5% decline in April and May, as the impact of the Covid-19 pandemic was felt more widely across the rest of the company.

Morgan Advanced Materials said all of its plants were now operational following temporary closures at sites in China, Italy, India, South Africa and Mexico.

Cost cutting measures had included moves to 'improve the structural cost position of the group for the longer term', which would further reduce costs by £20m per annum by 2022.

An anticipated cash cost of £30m would be incurred to deliver the savings.

Morgan Advanced Materials didn't specify if they included job cuts, only saying that it would provide more details at its half-year results announcement due 30 July.




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