(Sharecast News) - Molten metal flow engineering specialist Vesuvius reported a robust first-quarter performance in an update on Thursday, which it put down to better volume and pricing in both its steel and foundry divisions, surpassing initial expectations.
The FTSE 250 company said that with the anticipated recovery of its end markets from the low levels in the fourth quarter last year, its performance was aligning with expectations.
However, the pace of the recovery remained sluggish and uncertain.
Notwithstanding the uncertain business environment, Vesuvius said it had managed to improve its working capital intensity, which had become a focal point for the company.
Additionally, Vesuvius said that its growth capital investment programme was progressing as planned.
The firm was expecting the programme to bolster its performance once the market recovery gained momentum.
By investing in key areas of growth, Vesuvius said it was positioning itself to take advantage of future opportunities, and solidify its position in the industry.
Despite the prevailing uncertainties, Vesuvius maintained its unchanged expectations for the full year.
"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," said chief executive officer Patrick Andre.
"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 research and development, and our growth capital investment program."
At 1147 BST, shares in Vesuvius were up 0.55% at 413.66p.
Reporting by Josh White for Sharecast.com.
Vesuvius (VSVS)