Q3 2019 Trading Update
Vesuvius plc
15 October 2019
Q3 2019 Trading Update
Vesuvius plc ("Vesuvius", the "Group"), a global leader in molten metal flow engineering and technology, releases the following Trading Update covering the period from 1 July to 30 September 2019.
The challenging market environment highlighted at our half year results has continued into H2 2019, with end markets continuing to weaken further, particularly in the EMEA region.
As a result, following a review of our Q3 2019 results and an update of our forecasts for Q4, the Board has concluded that in the current market environment Group trading profit (EBITA) in 2019 is expected to be between £180-190m.
In EMEA, both our Steel and Foundry divisions have been impacted by a continuing weakening in their key end markets. Steel producers have announced annualised production cuts equivalent to c.4% of 2018 volumes since the end of June. Over this same period, IHS Markit has lowered its 2019 light vehicle production forecasts and it now expects a 5.6% decline versus 2018 compared to a 4.2% decline previously. In light of this challenging environment, management remains focused on our cost optimisation plans.
Despite the short-term end market weakness we are experiencing, we see no structural change to the positive, long-term fundamentals of our end markets and remain confident in our ability to achieve a 12.5% return-on-sales, although this is unlikely to be delivered until we revert to long-term growth trends.
CONFERENCE CALL
Patrick André (Chief Executive) and Guy Young (Chief Financial Officer) will be hosting a conference call for analysts and investors at 07.30 (UK time) today (15 October).
To join the call, please use the dial in number below:
Conference call:
+44 (0)33 0336 9411 all participants
Confirmation code: 2092009
A replay of the call will be available approximately one hour after the event for two weeks on the following number:
Replay:
+44 (0)20 7660 0134 non-US participants
+1 719 457 0820 US participants
Confirmation code: 2092009
This announcement contains inside information for the purposes of Market Abuse Regulation (Regulation (EU) No. 596/2014). The person responsible for making this notification on behalf of Vesuvius plc is Henry Knowles, Company Secretary.
FUTURE EVENTS
Vesuvius' full year results for the year ending 31 December 2019 are expected to be announced on Thursday, 27 February 2020.
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For further information, please contact: |
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Shareholder/analyst enquiries: |
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Vesuvius plc |
Patrick André, Chief Executive |
+44 (0) 207 822 0000 |
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Guy Young, Chief Financial Officer Euan Drysdale, Group Head of Corporate Finance |
+44 (0) 207 822 0000 |
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Media enquiries: |
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MHP Communications |
Andrew Jaques/ Ollie Hoare/ Peter Lambie |
+44 (0) 203 128 8100 |
About Vesuvius plc
Vesuvius is a global leader in molten metal flow engineering and technology, serving process industries operating in challenging high-temperature conditions.
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
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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