(Alliance News) - Vesuvius PLC on Tuesday said it continues to perform "robustly" but noted a "gradual deterioration" in a key market for the molten metal flow engineering firm.
Shares in the company traded 5.3% lower at 400.40 pence each in London on Tuesday morning.
The London-based firm said in its Foundry unit, it has seen a "general slowdown" outside of India in the four months to October 31. The firm's financial year runs to December 31.
"We have seen a gradual deterioration in most Foundry end markets outside of India, particularly in Northern Europe. Steel production levels outside of India have weakened relative to H1 in EMEA, South-East Asia and South America," Vesuvius said.
The unit provides foundry consumables services, aiming to reduce casting defects. It offers binders, lining systems and coatings.
Vesuvius said it is still performing "robustly" despite the Foundry woes.
"We are particularly pleased with the performance of our India business, which exposes us to one of the fastest growing Steel and Foundry production regions worldwide. We are continuing to gain share in that region enabled by our investments in high quality manufacturing facilities," it said.
"The medium-term fundamentals for the Steel and Foundry markets remain positive and we continue to implement our strategic initiatives. The capacity expansions in our higher-margin Flow Control business are close to completion and will support the growth regions of India, South-East Asia, Turkey, and Middle East and Africa. Capacity expansions in Advanced Refractories in India are also progressing well."
Vesuvius said it is confident of meeting internal expectations for 2023.
By Eric Cunha, Alliance News news editor
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Vesuvius (VSVS)