REG - Vesuvius plc - Trading Statement

VesuviusAnnouncement

18/05/2023 07:00

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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. £3.5m.

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
(https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=3043206&linkSecurityString=7aafe7aa4)

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
(https://services.choruscall.com/ccforms/replay.html)

Passcode: 44405

 

Future dates

Half-year results               27 July 2023

 

 For further information, please contact:
 Shareholder/analyst enquiries:
 Vesuvius plc                    Patrick André, Chief Executive                +44 (0) 207 822 0000
                                 Mark Collis, Chief Financial Officer          +44 (0) 207 822 0000

+44 (0) 7387 545 271
                                 Rachel Stevens, Head of Investor Relations
 Media enquiries:
 MHP Communications              Rachel Farrington, Ollie Hoare, Peter Lambie  +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 

 

 

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