Interim Management Statement

RNS Number : 1543H

Vesuvius plc

15 May 2014

 



15 May 2014

Vesuvius plc ("Vesuvius" or "the Group")

INTERIM MANAGEMENT STATEMENT

Vesuvius plc, a global leader in molten metal flow engineering, releases the following Interim Management Statement covering current trading, its financial position and outlook ahead of today's Annual General Meeting.  This statement covers the period from 1 January to 14 May 2014.

SUMMARY

Market conditions have remained broadly unchanged since we announced our 2013 Results at the beginning of March, and the Group's trading performance for the first four months of this year has been in line with the Board's expectations.  We are making good progress with our self-help initiatives to drive performance improvement regardless of the wider market environment, with margin improvement continuing in 2014.

STEEL MARKET

According to the World Steel Association, global steel production was 2.5% higher in the first quarter of 2014 compared to the same period last year.  Whilst the statistics for Europe have been encouraging, showing a 5.9% increase in production volumes, growth elsewhere has been more muted; just 0.8% in the US, 0.4% in Brazil and 1.6% in India. Production in China has increased by 2.4% year on year.

FOUNDRY MARKET

Market conditions in the global foundry industry have continued to be mixed. Although the automotive industry has indicated that truck and light vehicle production has increased in Europe and North America, volumes in Brazil and India have been weaker, and there has been no improvement in the low levels of investment in the mining end market.

FINANCIAL CONDITION

There has been no material change in our financial position from that reported at 31 December 2013.  We continue to operate with a strong balance sheet and remain cash generative.  We are maintaining our focus on working capital management, and are making further progress in reducing inventory days across the Group.

OUTLOOK

Whilst there have been encouraging signs of increased activity in some end-markets, namely in Europe, conditions in other end markets remain challenging, and we therefore continue to expect the underlying trading environment during 2014 to be broadly similar to that experienced in 2013.

As previously disclosed, a continuation of the current strength of sterling will have a negative impact on our reported results.  Despite this, management's sustained focus on self-help measures to drive operational efficiency, coupled with the strength of our customer relationships and our technical leadership and innovation, is expected to drive further margin improvement during the course of the year. Consequently, the Board remains confident in their expectations for the full year.

CONFERENCE CALL

François Wanecq (Chief Executive) and Chris O'Shea (Chief Financial Officer) will be hosting a conference call for analysts and investors at 07:45 a.m. (UK time) today (15 May).

To join the call, please use the dial in number below:

Conference call:

[phone] all participants

Confirmation code: 8368281

A replay of the call will be available approximately one hour after the event for two weeks on the following number:

Replay:

[phone] non-US participants

[phone] US participants

Confirmation code: 8368281

FUTURE EVENTS

The Vesuvius final 2013 dividend of 10.25 pence per share will be paid, subject to approval at the Annual General Meeting, on 23 May 2014 to shareholders on the register at 25 April 2014.

Vesuvius' half year results for the six months ending 30 June 2014 are expected to be announced on Friday 1 August 2014.

For further information please contact:

Shareholder/analyst enquiries:

Vesuvius plc                             François Wanecq, Chief Executive                                        [phone]

                                                   Chris O'Shea, Chief Financial Officer                                   [phone]

Tony Harrison, Group Head of Corporate Finance             [phone]

Media enquiries:

MHP Communications           John Olsen/Vicky Watkins                                                      [phone]

About Vesuvius plc

Vesuvius operates in the steel and foundry casting industries, with market and technology leadership across a range of mission critical products and services supplied to these sectors, including flow control solutions, advanced refractories and other consumable products.

We have a worldwide presence in both Steel and Foundry.  We serve our customers through a low-cost network of manufacturing plants located close to their own facilities, and by embedding our industry experts within their operations, all supported by our global technology centres.

Vesuvius' core competitive strengths are our leading technology and innovation, strong customer relationships, well established presence in developing markets, low-cost manufacturing base, and our global reach, all of which enable us to expand our addressable markets.

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

www.vesuvius.com

 

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