Vesuvius lowers full-year expectations

1st Aug 2024 09:11

(Sharecast News) - Vesuvius tumbled on Thursday after it said end markets were weaker than expected in the first half and that full-year headline trading profit was set to be "only slightly ahead" of last year on a constant currency basis.

In results for the six months to 30 June, the molten metal flow engineering and technology company said headline trading profit fell 7.4% to £97.2m, while statutory pre-tax profit was 19% lower at £76.7m. Revenue was down 5.9% on the same period a year earlier to £936.5m.

The company said end markets were weaker than anticipated, in particular in the foundry business. It hailed a "good" performance from the steel division, however, despite weak end markets.

Chief executive Patrick Andre said: "Our end markets remained subdued during the first half with, in particular, significant weakness in foundry. Despite these unfavourable market conditions, the steel division achieved a good performance, demonstrating the strength of its business model with continued market share gains in flow control and positive net pricing performance overall.

"In the foundry division however, good performances in market share gains, pricing management and cost reductions could not offset the negative impact of volume reduction due to market conditions."

Andre said the group no longer expects a significant improvement in end markets in the second half, with most external forecasts predicting end market recovery being postponed to 2025.

"Accordingly, we now expect our full year headline trading profit for the year to be only slightly ahead of last year on a constant currency basis," he said.

At 0910 BST, the shares were down 6.9% at 450p.