UK's Vesuvius H1 revenue rises 1.5% amid operational challenges
UK's Vesuvius H1 revenue rises 1.5% amid operational challenges
Overview
UK molten metal engineering firm's H1 revenue rose 1.5% at constant currency
Adjusted EPS fell 0.7% at constant currency, reflecting lower profit and operational issues
Company's Steel division faced operational challenges, but Foundry division improved on pricing and cost measures
Outlook
Vesuvius expects full-year trading profit to be slightly ahead of FY25 on constant currency basis
Company says operational issues are expected to be resolved by year-end
Vesuvius sees structural recovery in steel markets continuing in H2 and beyond
Result Drivers
OPERATIONAL ISSUES - Co said temporary operational challenges in the Steel division, especially in North America and India, led to lost sales and higher costs
COST REDUCTIONS - Structural cost reduction programme delivered £7.4 mln in H1, supporting results despite operational setbacks
FOUNDY DIVISION GAINS - Foundry division improved trading profit and revenue due to positive pricing, cost measures and MMS acquisition
Company press release: ID:nRSd4533Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 913.70 mln |
|
H1 ADJ-EBITDA |
| GBP 110 mln |
|
H1 Dividend |
| GBP 0.07 |
|
H1 Operating Profit |
| GBP 47.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Vesuvius plc is GBp495.00, about 36% above its July 29 closing price of GBp364.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)