(Alliance News) - Vesuvius PLC on Thursday said it expects earnings for 2020 to meet expectations following an improvement in demand in its Steel and Foundry divisions.
The FTSE 250-listed molten metal flow engineering company stated it expects earnings before interest, tax, depreciation and amortization for 2020 to be broadly in line with current market expectations of GBP99.2 million. For comparison, Ebitda was GBP181.4 million in 2019.
Vesuvius highlighted a slow improvement in demand in its Steel and Foundry divisions in the third quarter of 2020, highlighting that the positive trends have continued into the fourth quarter.
On a constant currency basis, sales in the third quarter were up 7.0% from the second quarter but were down 14% when compared to the year prior. The company noted, however, that this reflected an improvement from the 26% year-on-year fall recorded in the second quarter.
Separately, the London-based company highlighted it is on track to deliver GBP10 million of Covid-19 crisis-related savings for the second half of 2020, adding that its restructuring programmes remain on track to deliver GBP19.4 million per year of savings.
Available liquidity as at the end of October was GBP448 million.
Shares in Vesuvius were trading 0.1% lower at 479.20 pence each on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Vesuvius (VSVS)