Engineering group cuts 1,700 jobs

Engineering group Cookson is to cut a further 1,740 jobs as tough economic conditions hit its major markets.

The group has seen a sharp fall in demand for printed circuit boards as customers tighten their belts.

Cookson has reported a third-quarter loss of £14m, meaning that profit for the first nine months of the year was just £17m.

The group says no more than 220 jobs will go in the UK, with the vast majority of the fresh cuts taking place in the US - where it generated half of its revenue last year.

Chief executive Stephen Howard says the group has experienced a "unique confluence of challenges" since the start of the year.

"We have taken prompt and decisive action with regard to our cost base, but we have been careful not to cut the muscle of our business," he says.

Cookson, whose UK head office is in London, says third-quarter sales were 28% below the same period last year at £477m.

Mr Howard adds that the group's electronics division "continued to be affected by the unprecedented downturn in the global electronics industry".

He adds that the tragic events of September 11 have also had a negative impact on business and consumer confidence in the US.

Cookson, which cut 1,600 jobs in its electronics division in the first-half, now says it will close seven electronics plants with the loss of 900 jobs; shed 670 jobs by shutting six ceramics sites; and cut 170 more posts in its precious metals operation.