(Alliance News) - Vesuvius PLC on Wednesday said annual profit will top consensus, as trading conditions have improved so far in 2021.
Revenue in the first quarter rose 7% at constant currency, though still remains below 2019's levels.
The London-based molten metal flow engineering firm said supply chain disruption has only had a "limited impact" on its ability to meet customer orders so far in 2021. It has, however, led to a rise in costs, though Vesuvius expects this to ease later in the year.
"Selling price increases are being implemented to compensate for raw material cost increases, thereby offsetting the impact on profit margins," Vesuvius said.
For 2021, Vesuvius expects group trading profit to top consensus forecasts of GBP138 million. In 2020, it posted trading profit of GBP101.4 million.
The company has seen "clear evidence of end markets" improving, though the outlook does remain clouded, as key markets like India and Brazil may still be hurt by Covid-19 throughout the year.
Shares in the company were 0.6% higher at 583.50 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Vesuvius (VSVS)