Last checked at 6 Nov 2018 07:00
6 November 2018
Q3 2018 Trading Update
Vesuvius plc ("Vesuvius", the "Group"), a global leader in molten metal flow engineering, releases the following Trading Update in conjunction with its Capital Markets Day being held today.
SUMMARY & OUTLOOK
We continue to deliver a strong performance across all business units and regions of the world. As a result, we expect our full year Trading Profit (EBITA) to be in-line with current consensus market expectations (1), even after taking into account an increase in the foreign exchange headwind.
TRADING
The Group continues to benefit from growth in steel production, which in Q3 2018 versus Q3 2017 has increased 2.6% in the world excluding China and 4.3% including China, as reported by the World Steel Association. In Foundry, the market environment remains positive across the majority of our end markets.
Vesuvius' sales volume growth has continued to outperform underlying market growth.
Delivery of our previously communicated restructuring programmes has continued as planned during Q3 2018 and we remain on track with our plan to improve our profitability on a sustainable basis.
FOREIGN EXCHANGE
The impact of exchange rate movements during 2018 has increased since our H1 results, due primarily to further currency depreciation in many of the developing markets in which we operate. Without this increased foreign exchange headwind our expectations for full year Trading Profit would have been approximately 5% higher.
FINANCIAL POSITION AND WORKING CAPITAL
Working capital continues to show incremental improvement, cashflow remains strong and we are consistently reducing our leverage quarter on quarter.
CAPITAL MARKETS DAY
The presentation being given today at our Capital Markets day is to provide more detail on the company's markets, its technologies, its strategy and the initiatives that support the delivery of a target 12.5% Return on Sales in 2020. The presentation will be available on our website from 9am and an audio recording of the event will be available later today.
Note: (1) The current market consensus for Trading Profit (EBITA) in 2018 based on Vesuvius' internal calculations is £195m (before separately reported items)
For further information please contact:
Shareholder/analyst enquiries:
Vesuvius plc | Patrick André, Chief Executive | +44 (0) 207 822 0000 |
Guy Young, Chief Financial Officer | +44 (0) 207 822 0000 | |
Euan Drysdale, Group Head of Corporate Finance | +44 (0) 207 822 0027 | |
Virginia Skroski, Investor Relations Manager | +44 (0) 207 822 0016 |
Media enquiries:
MHP Communications | Andrew Jaques/James White/Ollie Hoare | +44 (0) 203 128 8100 |
About Vesuvius plc
Vesuvius is a global leader in molten metal flow engineering principally serving the steel and foundry industries.
We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to improve their manufacturing processes, enhance product quality and reduce energy consumption. These include flow control solutions, advanced refractories and other consumable products and - increasingly - related technical services including data capture.
We have a worldwide presence. We serve our customers through a network of low-cost manufacturing plants located close to their own facilities, and embed our industry experts within their operations, who are all supported by our global technology centres.
Our core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and our global reach, all of which facilitate the expansion of our addressable markets.
Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investment whilst providing each of our employees with a safe workplace where he or she is recognised, developed and properly rewarded.
Forward looking statements
This announcement contains certain forward looking statements which may include reference to one or more of the following: the Group's financial condition, results of operations, cash flows, dividends, financing plans, business strategies, operating efficiencies or synergies, budgets, capital and other expenditures, competitive positions, growth opportunities for existing products, plans and objectives of management and other matters.
Statements in this announcement that are not historical facts are hereby identified as "forward looking statements". Such forward looking statements, including, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs and income, in each case relating to Vesuvius, wherever they occur in this announcement, are necessarily based on assumptions reflecting the views of Vesuvius and involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements. Such forward looking statements should, therefore, be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward looking statements. These include without limitation: economic and business cycles; the terms and conditions of Vesuvius' financing arrangements; foreign currency rate fluctuations; competition in Vesuvius' principal markets; acquisitions or disposals of businesses or assets; and trends in Vesuvius' principal industries.
The foregoing list of important factors is not exhaustive. When considering forward looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in documents the Company files with the UK regulator from time to time including its annual reports and accounts.
You should not place undue reliance on such forward looking statements which speak only as of the date on which they are made. Except as required by the Rules of the UK Listing Authority and the London Stock Exchange and applicable law, Vesuvius undertakes no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this announcement might not occur.
Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
LEI: 213800ORZ521W585SY02
www.vesuvius.com