Abstracts » Business

Ibstock Johnson: straw not bricks

Article Abstract:

Ibstock Johnson's brick business has been affected by problems in the UK market as a whole. The company's pulp activities have sometimes led to large losses with profits being erratic. Ibstock has decided to move out of pulp and strengthen its brick business through two acquisitions, but meanwhile its chief executive has left. Philip Mengel has been appointed as the company's new head, and he has performed well in the US but has little experience in the UK where overcapacity will hamper any recovery in the market.

Ibstock Johnsen PLC

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Baggeridge Brick

Article Abstract:

Baggeridge Brick invested 10 million pounds sterling in boosting capacity, but was hit by a drop in brick sales in the UK from spring 1995. The company faced continued problems in 1st qtr 1996, with sales down due to a hard winter, and prices for bricks down by 5%. Brick prices have dropped by 50% from a peak in the 1980s, but the acquisition of the brick activities of Redland by Ibstock should help stabilise prices. An increase in demand is likely, which should mop up excess capacity in the industry.

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Baggeridge Brick: ready to build

Article Abstract:

Baggeridge Brick has been affected by falling UK brick prices after stocks built up, but prices have ceased to drop and demand should increase. Two companies, Hanson and Ibstock, account for some 67% of UK brick sales. Baggeridge holds a stake of some 10% in the market. The UK market for new housing is likely to revive, and spending on infrastructure is set to increase, which will boost demands for bricks. The company could achieve a profit of 4 million pounds sterling for 1997, according to brokers.

Unglazed Brick

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