TIDMVSVS
RNS Number : 7981Z
Vesuvius plc
18 May 2023
18 May 2023
Vesuvius plc - Trading Update
Resilient trading in the year to date, expectations for the year
unchanged
Vesuvius plc, a global leader in molten metal flow engineering
and technology, announces the following update covering trading in
the period 1 January to 30 April 2023.
Summary
-- Vesuvius has performed well in the period, due to a
combination of better volume and pricing performance
relative to our expectations, in both our Steel and
Foundry divisions
-- As expected, our end markets have started to recover
from the low level of Q4 2022. However, the pace of
this recovery remains slow and uncertain
-- Working capital intensity has started to improve and
will remain an area of focus
-- Our growth capital investment program is proceeding
as planned and will support the Group's performance
when the market recovery accelerates
-- Despite the current uncertain environment and thanks
to our positive performance in the year to date, our
expectations remain unchanged for the full year
Good trading
Vesuvius has traded well in the period, with both pricing and
volumes modestly ahead of our initial expectations across both
divisions. Foundry has delivered particularly well with resilient
pricing in the period driving better than expected margin. The
Steel division was also ahead of expectations, benefitting from
resilient pricing as well as slightly better than anticipated
volumes.
This good performance has been achieved despite the impact of
the cyber incident that occurred earlier in the year, which we
expect to have a cost impact of c. GBP3.5m.
End markets gradually recovering
Steel production volumes started to improve in Q1 versus Q4 2022
as destocking gradually came to an end during the quarter. However,
steel production for the World excluding China and Iran in Q1 2023
was 6.8% lower than in Q1 2022 (Source: WSA) reflecting continued
weakness of end markets in all major regions, with the notable
exception of China and India. We expect steel production to
continue progressing in the coming months but at a slow pace.
Foundry markets have also started to moderately improve, supported
in particular by a positive evolution of the light vehicle
production. As in steel, the pace at which foundry markets will
continue to recover in the coming months remains uncertain.
Working capital focus
Working capital management continues to be a priority, and
progress has been made in debtors and creditors. Progress in
inventory management has been slowed down by the cyber incident but
is expected to resume in the coming months. We remain focused and
are confident in continuing to make improvements throughout the
year.
Outlook
Trading in the period to date has been ahead of our initial
expectations and our end markets have started to recover. However,
the pace of this recovery is slow and remains uncertain for the
coming months. Despite this, and thanks to our positive performance
in the year to date, our expectations for the full year remain
unchanged.
Patrick Andre, Chief Executive, commented "Trading in the year
to date has been positive, reflecting the beginning of a recovery
of our end markets and continued traction with our customers, who
value the high quality of the value-added solutions and products we
supply. Despite short-term uncertainty, we remain highly confident
in the growth potential of our performance as soon as the market
recovery accelerates. Consequently, we continue, at pace, our
industry leading investment in R&D and our growth capital
investment program."
CONFERENCE CALL
Patrick André (Chief Executive) and Mark Collis (Chief Financial
Officer) will be hosting a conference call for analysts and
investors at 09:00 (UK time) today.
To participate, please register at least 30 minutes prior to the
start of the call by following the link here
A replay of the call will be available for one week on the
following numbers:
UK Freephone: 08081891386
UK Direct: 0203 608 8021
Replay Global Access URL: link here
Passcode: 44405
Future dates
Half-year results 27 July 2023
For further information, please contact:
Shareholder/analyst enquiries:
Patrick André, Chief +44 (0) 207 822
Vesuvius plc Executive 0000
M ark Collis , Chief Financial +44 (0) 207 822
Officer 0000
Rachel Stevens, Head of Investor +44 (0) 7387
Relations 545 271
Media enquiries:
Rachel Farrington, Ollie Hoare, +44 (0) 203 128
MHP Communications Peter Lambie 8100
About Vesuvius plc
Vesuvius is a global leader in molten metal flow engineering and
technology principally serving process industries operating in
challenging high--temperature conditions.
We develop innovative and customised solutions, often used in
extremely demanding industrial environments, which enable our
customers to make their manufacturing processes safer, more
efficient and more sustainable. These include flow control
solutions, advanced refractories and other consumable products and
increasingly, related technical services including data
capture.
We have a worldwide presence. We serve our customers through a
network of cost-efficient manufacturing plants located close to
their own facilities, and embed our industry experts within their
operations, who are all supported by our global technology
centres.
Our core competitive strengths are our market and technology
leadership, strong customer relationships, well established
presence in developing markets and our global reach, all of which
facilitate the expansion of our addressable markets.
Our ultimate goal is to create value for our customers, and to
deliver sustainable, profitable growth for our shareholders giving
a superior return on their investment whilst providing each of our
employees with a safe workplace where they are recognised,
developed and properly rewarded.
We think beyond today to create solutions that will shape the
future for everyone.
Forward looking statements
This announcement contains certain forward looking statements
which may include reference to one or more of the following: the
Group's financial condition, results of operations, cash flows,
dividends, financing plans, business strategies, operating
efficiencies or synergies, budgets, capital and other expenditures,
competitive positions, growth opportunities for existing products,
plans and objectives of management and other matters.
Statements in this announcement that are not historical facts
are hereby identified as "forward looking statements". Such forward
looking statements, including, without limitation, those relating
to the future business prospects, revenue, working capital,
liquidity, capital needs, interest costs and income, in each case
relating to Vesuvius, wherever they occur in this announcement, are
necessarily based on assumptions reflecting the views of Vesuvius
and involve a number of known and unknown risks, uncertainties and
other factors that could cause actual results, performance or
achievements to differ materially from those expressed or implied
by the forward looking statements. Such forward looking statements
should, therefore, be considered in light of various important
factors that could cause actual results to differ materially from
estimates or projections contained in the forward looking
statements. These include without limitation: economic and business
cycles; the terms and conditions of Vesuvius' financing
arrangements; foreign currency rate fluctuations; competition in
Vesuvius' principal markets; acquisitions or disposals of
businesses or assets; and trends in Vesuvius' principal
industries.
The foregoing list of important factors is not exhaustive. When
considering forward looking statements, careful consideration
should be given to the foregoing factors and other uncertainties
and events, as well as factors described in documents the Company
files with the UK regulator from time to time including its annual
reports and accounts.
You should not place undue reliance on such forward looking
statements which speak only as of the date on which they are made.
Except as required by the Rules of the UK Listing Authority and the
London Stock Exchange and applicable law, Vesuvius undertakes no
obligation to update publicly or revise any forward looking
statements, whether as a result of new information, future events
or otherwise. In light of these risks, uncertainties and
assumptions, the forward looking events discussed in this
announcement might not occur.
Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
LEI: 213800ORZ521W585SY02
www.vesuvius.com
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END
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