15 May 2024
Vesuvius
plc - Trading Update
Vesuvius
plc, a global leader in molten metal flow engineering and
technology, announces the following update for the period 1 January
to 30 April 2024.
Summary
-
Performance
in the period was in line with our expectations
-
We
maintain our expectations for FY 2024
-
Excluding
India and EEMEA, Steel markets
remained subdued at the beginning of the year, as
anticipated
-
Foundry
markets outside of India remained
weak, particularly in EU27+UK and North
Asia
-
We
continue to perform robustly due to our differentiated product
offering, with a resilient pricing performance
-
Flow
Control gained market share in all regions except EU+UK; Foundry
gained market share in all regions
-
Our
cost-saving programme is proceeding to plan, and we are confident
in delivering both our current in-year and exit rate targets, as
well as our £30m cash cost savings target by 2026
-
We
continue to make progress in the reduction of working capital
intensity
-
Market
fundamentals remain attractive, and our significant investments in
growth initiatives in Asia and in
Flow Control remain on track
Resilient
trading in weak end markets
Steel end
markets remained subdued at the beginning of the year, as
anticipated, except for India,
which continued to grow compared to the same period last year, and
EEMEA which recovered from a low base following the earthquake in
Turkey in 2023. Steel production
volumes in the EU27+UK area continued to be subdued in the first
quarter of the year, although improved compared to the prior
quarter. Chinese
steel exports have continued to increase significantly, triggering
the introduction of trade protection measures in some countries,
notably in South
America.
Foundry
markets have remained weak, particularly in EU27+UK and
North Asia, which represent c. 44%
of Foundry sales.
Despite
these difficult market conditions, we continue to perform well,
achieving market share gains in Flow Control and Foundry. Advanced
Refractories has not yet regained market share lost last year due
to priority being given to pricing. Net pricing has remained
resilient across all three business units. Our India businesses continued to perform well
which reinforces our position in one of the fastest growing Steel
and Foundry markets worldwide. We continue to grow at pace in that
region, supported by our long-term strategy of investment in high
quality manufacturing facilities, including the recently
inaugurated Mold Flux plant at Vizag.
Overall,
our performance was in line with our expectations.
Cost
savings programme on target
The
cost-savings programme is proceeding as planned. We continue to
target annualised cash cost savings of £30m by 2026, with at least
£3m delivered in 2024 and an exit run-rate of £10-15m by the end of 2024.
Market
fundamentals remain strong and growth initiatives are on
track
The
fundamentals for the Steel and Foundry markets remain positive and
we continue to implement our significant strategic initiatives,
including capacity expansions in our higher-margin Flow Control
business globally, and investment in capacity for Advanced
Refractories and Foundry in Asia.
Outlook
The
resilience of our business gives us continued confidence that we
will deliver on our full year 2024 expectations.
Glossary
EEMEA Europe,
Middle East and Africa, excluding EU+UK
CONFERENCE
CALL
Patrick
André (Chief Executive) and Mark
Collis (Chief Financial Officer) will be hosting a
conference call for analysts and investors at 08:30 (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:
United Kingdom:
+44 20
3433 3849
Australia
Toll-Free:
+61 1800
021 202
Australia
Toll:
+61
2 8078 2917
US &
Canada Toll-Free:
+1(800)
770-2030
US
Toll:
+1(609)
800-9909
Canada
Toll:
+1(647)
362-9199
France:
+33
1 73 02 81 84
Germany:
+49
69 589964211
Hong Kong: +852
3018 3027
India:
+91
22 5032 3279
Japan:
+81
3 4588 1481
New Zealand:
+64
9 886 9995
Singapore:
+65
3159 5801
United States:
+1
800 770 2030
Passcode:
45800
For further information, please
contact:
|
|
Shareholder/analyst enquiries:
|
|
Vesuvius plc
|
Patrick André, Chief Executive
|
+44 (0) 207 822 0000
|
|
Mark Collis, Chief Financial Officer
Rachel Stevens, Head of Investor Relations
|
+44 (0) 207 822 0000
+44 (0) 7387 545 271
|
Media enquiries:
|
|
|
MHP Communications
|
Rachel Farrington, Ollie Hoare,
|
+44 (0) 203 128 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