TIDMVSVS
RNS Number : 0528F
Vesuvius plc
12 November 2020
12 November 2020
Vesuvius plc
Trading Update
Vesuvius plc, a global leader in molten metal flow engineering,
announces the following update covering trading in the period 1
July to 31 October 2020.
SAFETY RESPONSE TO COVID-19
Vesuvius' priority remains the health and safety of our
employees and other stakeholders. We continue to take all necessary
actions to maintain a safe working environment for our employees.
All our plants have been fully operational since April and are
prepared to ramp-up production as the recovery progresses.
TRADING SUMMARY
Demand in our end markets has improved, albeit slowly, in both
our Steel and Foundry divisions during Q3 2020 and these trends
have continued into Q4. On a constant currency basis, our sales in
Q3 were up 7.0% quarter on quarter and although down 14.3% year on
year, this is an improvement on the sales decline of 26.2% in Q2
compared to Q2 2019. The improvement in trading continued into
October 2020 with sales down a more modest 7.5% compared to October
2019.
COST SAVINGS
We are on track to deliver the targeted GBP10m per quarter of
Covid-19 crisis-related savings in H2 2020 and our restructuring
programmes remain on-track to deliver GBP19.4m per annum of
recurring cost savings in 2020.
FINANCIAL POSITION AND LIQUIDITY
Our leverage has further reduced since H1 2020 and our available
liquidity at the end of October was GBP448m, GBP73m higher than in
February of this year, prior to the Covid-19 crisis impacting our
financial results.
WORKING CAPITAL
The efficient management of working capital has been an
important factor in supporting our leverage reduction and liquidity
during 2020. As at the end of October, trade working capital to
sales (3-month average) was 22.4%, compared to 26.7% at 30 June
2020.
OUTLOOK
Covid-19 infection rates continue to rise on a global basis and,
therefore, significant uncertainty remains regarding the speed of
recovery during 2021, despite the partial recovery in trading since
Q2 2020.
Following a review of our results to the end of October 2020 and
an updated forecast for the remainder of the year, we expect Group
trading profit (EBITA(1) ) in 2020 to be broadly in-line with
current consensus market expectations(2) .
Notes:
(1) Excludes separately reported items.
(2) The market consensus as at 11 November for 2020 Trading
Profit (EBITA (1) ) is GBP99.2m, based on estimates compiled by
Vesuvius.
CONFERENCE CALL
Patrick André (Chief Executive) and Guy Young (Chief Financial
Officer) will be hosting a conference call for analysts and
investors at 08.30 UK time today (12 November 2020).
To join the call, please use the dial-in numbers below:
UK: +44 (0) 203 107 0289
US: +1 (918) 922 6506
Conference ID: 7066638
In order to join the call, participants will be required to
provide the Conference ID Number listed above.
A replay of the call will be available approximately 2 hours
after the event for two weeks on the following number:
UK: +44 (0) 203 107 0235
US: +1 (855) 859-2056
Confirmation code: 7066638
For further information, please contact:
Shareholder/analyst
enquiries:
+44 (0) 20 7822
0000
Patrick André, Chief Executive +44 (0) 20
Guy Young, Chief Financial Officer 7822 0000
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) 203
MHP Communications Andrew Jaques/ Peter Lambie 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
www.vesuvius.com
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END
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November 12, 2020 02:00 ET (07:00 GMT)
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