While trading conditions remained challenging in the third quarter, particularly because of reduced demand from the European automotive sector, demand grew for our composite cylinders, high-performance magnesium alloys and industrial catalyst products.
Though revenues were lower than expected, trading profit in the quarter of $16.4 million is consistent with our expectations for the period and is $4.8 million, or -22.7%, less than the $21.2 million trading profit for the third quarter of 2011. A combination of unique circumstances in the third quarter of 2011 resulted in some exceptional gains and therefore an unusually high trading profit. As we previously stated, this quarter was not indicative of on-going organic growth expectations. Trading profit for the third quarter of 2012 exceeded all other quarters in 2011, as well as the 2010 third-quarter trading profit of $12.1 million.
Divisional Analysis of Revenue and Trading Profit
|THIRD QUARTER 2012||THIRD QUARTER 2011|
|Return on Sales %||7.0%||21.8%||14.3%||2.9%||23.0%||15.0%|
Gas CylindersThe Gas Cylinder division’s revenue was $57.5 million in the third quarter of 2012, an increase of $1.6 million from the $55.9 million in the third quarter of 2011. Excluding the $0.9 million adverse impact of exchange rate translation, organic revenue grew by $2.5 million or 4.5% over the third quarter of 2011.
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