REG - Vesuvius plc - Trading Update

VesuviusAnnouncement

25/07/2022 07:00

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RNS Number : 5280T  Vesuvius plc  25 July 2022

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the Market
Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

 

25 July 2022

 

 

TRADING UPDATE

 

Vesuvius plc ("Vesuvius", the "Group"), a global leader in molten metal flow
engineering, releases the following trading update in relation to the first
six months of 2022.

 

TRADING AND OUTLOOK

 

Further to the Group's trading update in relation to the first four months of
the year made on 18 May 2022, trading for the months of May and June remained
stronger than anticipated, despite ongoing end market weakness. As a result,
Vesuvius now expects to report a trading profit (EBITA)(1) for the first half
of 2022 of £127.4m. Our outperformance in H1 was due to the successful
implementation of our pricing strategy to recover input costs as well as
market share gains, supported by our technological differentiation.

 

In line with the announcement made on 18 May 2022, there remains significant
uncertainty as to the strength of our end markets in H2 due to the ongoing
geo-political environment and potential macroeconomic weakness. Due to this
uncertainty, our expectations for trading in the second half of the year,
including a material drop in volume compared to H1 and challenging cost
inflation, remain broadly unchanged. Consequently, Vesuvius now expects its
full year Group trading profit (EBITA)(1) to be towards the top end of the
range of current analysts' expectations(2).

 

While the scale of the potential slow-down remains highly uncertain, we are
confident that we can deliver a resilient performance and emerge stronger once
end markets return to growth.

 

HALF YEAR RESULTS

 

Vesuvius will announce its 2022 half year results at 07:00 on Thursday 28 July
2022.

 

Notes:

(1) Excludes separately reported items

(2) The range of analyst expectations as at 25 July 2022 for 2022 Trading
Profit (EBITA)(1) is between £155m and £199m compiled by Vesuvius.

 

The person responsible for making this announcement on behalf of the Company
is Guy Young, Chief Financial Officer.

 

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

+44 (0) 7584 641 315
                                 Euan Drysdale, Group Head of Corporate Finance

                                                +44 (0) 7387 545 271
                                 Rachel Stevens, Head of Investor Relations

 Media enquiries:
 MHP Communications              Andrew Jaques/ Rachel Farrington/Peter Lambie    +44 (0) 203 128 8570

 

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 (http://www.vesuvius.com)

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