Vesuvius sees FY trading profit in line with market expectations
Vesuvius said on Tuesday that full-year trading profit should be in line with consensus market expectations of £195m, even after taking into account a rise in the foreign exchange headwind.
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The molten metal flow engineering company said it continues to deliver a "strong performance" across all business units and regions, benefiting from growth in steel production, which increased 2.6% in the world excluding China in third quarter of 2018 versus the same period a year ago. Including China, it was up 4.3%, as reported by the World Steel Association.
Meanwhile, in foundry, the majority of the company's end markets remain positive and Vesuvius said its sales volume growth has continued to outperform underlying market growth.
"The impact of exchange rate movements during 2018 has increased since our H1 results, due primarily to further currency depreciation in many of the developing markets in which we operate. Without this increased foreign exchange headwind our expectations for full year trading profit would have been approximately 5% higher," it said.
The company said working capital continues to show incremental improvement, cash flow remains strong and it is consistently reducing its leverage quarter on quarter.
At 1020 GMT, the shares were up 0.5% to 555p.