(Alliance News) - Vesuvius PLC on Thursday reported an increase in first half profit, supported by recovery in its Steel and Foundry divisions.
Pretax profit for the six months ended June 30 was GBP65.5 million, a rise of 89% year-on-year from GBP34.6 million.
The London-based molten metal flow engineering firm posted revenue of GBP808.1 million, up 12% from GBP720.0 million, reflecting the ongoing recovery in both its Steel and Foundry divisions across most geographies.
Vesuvius' Steel division reported revenue of GBP570.3 million, an increase of 10% from GBP516.3 million and its Foundry division reported revenue of GBP237.8 million, an increase of 17% compared from GBP203.7 million.
However, the group's trading profit in the half hurt by GBP10.3 million in excess freight costs due to disruption in global supply chains, with Vesuvius expecting this headwind to continue throughout 2021.
Vesuvius declared an interim dividend of 6.2 pence, doubled from 3.1 pence the prior year.
"Vesuvius delivered a strong commercial performance in the first half, supported by the continued improvement in end markets and market share gains in Steel Flow Control and Foundry. While we continue to experience inflationary pressure in certain raw materials and freight, this will be offset in the second half through incremental selling price increases currently being implemented. Consequently, trading profit in the second half is expected to be similar to the first half. Overall, our expectation for the full year is unchanged," said Chief Executive Patrick Andre.
The company said it expects to continue structural growth in its end markets of Steel and Foundry to present attractive organic growth opportunities, supported by the strategic expansion of its Steel Flow Control production capacities in Asia and EMEA.
Shares in Vesuvius were up 3.5% to 536.00 pence each in London on Thursday morning.
By Amrit Sahota; newsroom@alliancenews.com
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Vesuvius (VSVS)