Interim Management Statement

RNS Number : 1746V

Vesuvius plc

24 October 2014

 



24 October 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 trading in the period from 1 July to 23 October 2014.

SUMMARY

The Group's trading performance for the third quarter of this year has been in line with the Board's expectations, despite some softening in market conditions in certain regions since the announcement of our 2014 Half Year Results in August. We continue to implement a range of strategic and operational initiatives across all business lines to improve trading margins across the Group, and we remain resolutely focused on cash generation. Further to the announcement made in August, we are pleased to announce the completion of the acquisitions of the technical services businesses, Ecil Met Tec and Process Metrix, for an aggregate consideration of approximately £30m. 

Therefore, the Board's expectations for the full year performance remain unchanged.

STEEL MARKET

The rate of year on year growth in the global steel industry has reduced in the third quarter to just over 1%, resulting in global growth of 2.1% in the first 9 months of the year. Nevertheless, Vesuvius continues to outperform the global steel market with underlying revenue growth ahead of the market, driven by the delivery of our Group strategy to invest in technology and to focus on segments where customers recognise the value we add to their manufacturing processes in terms of efficiency, reliability and safety.

FOUNDRY MARKET

Market conditions in the global foundry industry remain challenging. Whilst truck and light vehicle production remains above the levels seen in 2013, most notably in North America, the rate of growth has slowed recently and there has been no sign of improvement in the low levels of investment in the high value mining end market. 

FINANCIAL CONDITION

There has been no material change in our financial position from that reported in our Half Year results on 1 August 2014. We continue to operate with a strong balance sheet and remain cash generative. We are maintaining our focus on working capital management, and continue to make progress in reducing inventory and debtor days across the Group.

OUTLOOK

Whilst there have been signs of increased activity in some end-markets, namely in the US, Europe has seen weaker growth over the period and conditions in end markets in South America and Asia remain challenging. We expect these conditions to continue for the remainder of the year. As previously disclosed, a continuation of the current strength of sterling will have a negative impact on our reported results. It is expected that Management's sustained focus on driving operational efficiency, coupled with the strength of our customer relationships and our technical leadership and innovation, will drive further margin improvement. Consequently, the Board's expectations for the Group's full year performance remain unchanged.

CONFERENCE CALL

François Wanecq (Chief Executive) and Chris O'Shea (Chief Financial Officer) will be hosting a conference call for analysts and investors at 09.00 a.m. (UK time) today (24 October).

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

Conference call:

[phone] all participants

Confirmation code: 7689809

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: 7689809

FUTURE EVENTS

Vesuvius' preliminary announcement of results for the year ending 31 December 2014 is expected to be made on Tuesday 3 March 2015.

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]

Louise Richardson, Interim Investor Relations Manager   [phone]

Media enquiries:

MHP Communications           John Olsen/Jamie Ricketts/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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