TIDMVSVS
RNS Number : 2966Y
Vesuvius plc
12 May 2021
12 May 2021
AGM Trading Update
Vesuvius plc ("Vesuvius", the "Group"), a global leader in
molten metal flow engineering, releases the following Trading
Update in conjunction with its Annual General Meeting being held
today.
Q1 TRADING
Steel production in Q1 2021 increased by 3.7% compared to Q1
2020 in the world excluding China and by 15.6% in China, as
reported by the World Steel Association. This is a broad-based
improvement with all regions, except for the US and Mexico,
reporting production increases compared to Q1 2020.
Trends were also positive across key foundry end-markets in Q1
2021. Global light vehicle and heavy commercial vehicle production
have increased by 10.5% and 6.5%, respectively, compared to Q1
2020, as reported by IHS.
This positive market environment and some market share gains are
reflected by a constant currency growth in Q1 Group revenue of 7%
in comparison with the same period last year, although Group
revenues remain lower than the same period in 2019.
Whilst in the first four months of the year we experienced some
supply chain disruptions in the sea freight market and at some raw
material suppliers, these have had only a limited impact on our
ability to meet customer orders. They have, however, resulted in
some temporary friction costs, which are expected to reduce
throughout the remainder of the year.
Selling price increases are being implemented to compensate for
raw material cost increases, thereby offsetting the impact on
profit margins.
WORKING CAPITAL
Working capital growth due to end market recovery has been
successfully managed and we have made further progress in terms of
working capital efficiency with our Trade Working Capital / Sales
ratio improving to 22.3% (12m average) compared to 23.1% at
year-end 2020.
FINANCIAL POSITION
Our balance sheet remains strong and as a result of the recovery
in trading performance we expect leverage at the half-year to be
largely unchanged versus year-end 2020, despite the impact on net
debt from working capital growth and the 2020 final dividend
payable in May.
FOREIGN EXCHANGE
The implied impact on our expected 2021 results of average Q1
2021 exchange rates, when compared to average 2020 FX rates, is a
headwind of 5% on our 2021 Trading Profit.
OUTLOOK
Although it is still early in the year and with the uncertainty
remaining in how the pandemic might still impact some key regions
like India and Brazil, based on the good commercial performance in
Q1 and clear evidence of end markets continuing to improve, we
expect to deliver Group trading profit (EBITA(1) ) moderately ahead
of the current consensus of GBP138m(2) for the full year 2021.
Notes:
1. Excludes separately reported items
2. Company-compiled consensus
CONFERENCE CALL
Patrick André (Chief Executive) and Guy Young (Chief Financial
Officer) will be hosting a conference call for analysts and
investors at 09:30 (UK time) today (12 May).
To participate, please register at least 30 minutes prior to the
start of the call by logging on to:
https://cossprereg.btci.com/prereg/key.process?key=PGHNTU8BE
A replay of the call will be available approximately one hour
after the event for two weeks on the following number:
Replay:
UK Freefone: 0800 032 9687
UK Direct: 0207 136 9233
Replay Access:
http://www.conferencingsupport.com/globalaccess/?bid=00&itfn=1&ddi=1&ref
Passcode: 22719312
FUTURE EVENTS
The Vesuvius final 2020 dividend of 14.3 pence per share will be
paid, subject to approval at the Annual General Meeting, on 21 May
2021 to shareholders on the register as at 16 April 2021.
Vesuvius' half year results for the six months ending 30 June
2021 are expected to be announced on Thursday, 29 July 2021.
For further information, please contact:
Shareholder/analyst
enquiries:
Euan Drysdale, Group Head of Corporate +44 (0) 7584
Finance 641315
Pamela Antay, Head of Investor +44 (0) 7827
Vesuvius plc Relations 802277
Media enquiries:
+44 (0) 7710
032 657
Andrew Jaques/ Rachel Farrington/Peter +44 (0) 7801
MHP Communications Lambie 894 577
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
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END
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