Vesuvius (LON:VSVS), a global leader in molten metal flow engineering and technology, released the following Trading Update covering the period from 1 July to 30 September 2019.
The challenging market environment highlighted at our half year results has continued into H2 2019, with end markets continuing to weaken further, particularly in the EMEA region.
As a result, following a review of our Q3 2019 results and an update of our forecasts for Q4, the Board has concluded that in the current market environment Group trading profit (EBITA) in 2019 is expected to be between £180-190m.
In EMEA, both our Steel and Foundry divisions have been impacted by a continuing weakening in their key end markets. Steel producers have announced annualised production cuts equivalent to c.4% of 2018 volumes since the end of June. Over this same period, IHS Markit has lowered its 2019 light vehicle production forecasts and it now expects a 5.6% decline versus 2018 compared to a 4.2% decline previously. In light of this challenging environment, management remains focused on our cost optimisation plans.
Despite the short-term end market weakness we are experiencing, we see no structural change to the positive, long-term fundamentals of our end markets and remain confident in our ability to achieve a 12.5% return-on-sales, although this is unlikely to be delivered until we revert to long-term growth trends.
CONFERENCE CALL
Patrick André (Chief Executive) and Guy Young (Chief Financial Officer) will be hosting a conference call for analysts and investors at 07.30 (UK time) today (15 October).
To join the call, please use the dial in number below:
Conference call:
+44 (0)33 0336 9411 all participants
Confirmation code: 2092009
A replay of the call will be available approximately one hour after the event for two weeks on the following number:
Replay:
+44 (0)20 7660 0134 non-US participants
+1 719 457 0820 US participants
Confirmation code: 2092009
FUTURE EVENTS
Vesuvius’ full year results for the year ending 31 December 2019 are expected to be announced on Thursday, 27 February 2020.
