AGM Trading Update
Vesuvius plc, a global leader in molten metal flow engineering, releases the following Trading Update in conjunction with its Annual General Meeting being held today.
Overall market conditions remain unchanged since we announced our 2015 Full Year Results at the beginning of March with lower year-on-year global steel production and mixed end markets in our Foundry Division. We continue to make good progress with our self-help and restructuring actions as evidenced by the decision in April to close the Flow Control plant in Ostrawa, Czech Republic. As communicated at the beginning of March, restructuring will deliver benefits of £20m per annum by the end of 2017. We expect the underlying trading environment for the balance of the year to remain similar to that experienced in the second half of 2015, and our trading performance to be in line with current full year expectations.
According to the World Steel Association global steel production was 3.6% lower in the first quarter of 2016, compared to the same period last year, and 0.1% higher than the fourth quarter of last year1.
Market conditions in the global foundry industry have remained mixed with year on year quarterly declines in mining, agriculture and construction markets in the US, Brazil, Australia and South East Asia. In contrast to this light vehicle production increased in Europe and NAFTA, and truck output also increased in Europe.
We continue to operate with a strong balance sheet and are maintaining our focus on cash generation through prudent management of our working capital and capital investments.
As announced at our Full Year Results, we expect the underlying trading environment to remain similar to that experienced in the second half of 2015. Whilst it is relatively early in the year, we anticipate that our trading performance, supported by the ongoing benefit of our restructuring actions, will be in line with current expectations for the full year. We remain confident in our ability to capitalise on any recovery in our addressable markets in the medium term.
François Wanecq (Chief Executive) and Guy Young (Chief Financial Officer) will be hosting a conference call for analysts and investors at 09.00 (UK time) today (12 May).
To join the call, please use the dial in number below:
+44 (0)20 3478 5300 all participants
Confirmation code: 4083407
To listen to the replay of the call use the following number:
+44 (0)20 3427 0598 non-US participants
+1 347 366 9565 US participants
Confirmation code: 4083407
Annual General Meeting
The Group’s Annual General Meeting is being held today at 11.00 (UK time) at The Lincoln Centre, 18 Lincoln's Inn Fields, London WC2A 3ED.
The Vesuvius final 2015 dividend of 11.125 pence per share will be paid, subject to approval at the Annual General Meeting, on 20 May 2016 to shareholders on the register as at 8 April 2016.
Vesuvius’ half year results for the six months ending 30 June 2016 are expected to be announced on Thursday, 28 July 2016.
For further information please contact:
François Wanecq, Chief Executive
+44 (0) 207 822 0000
Guy Young, Chief Financial Officer
+44 (0) 207 822 0000
Virginia Skroski, Investor Relations Manager
+44 (0) 207 822 0016
John Olsen/Jamie Ricketts/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
1 The World Steel Association publishes monthly steel production figures approximately three weeks after the end of the month. As at 12 May 2016, the most recent data available is for the three-month period to 31 March 2016.