Vesuvius expects revenues to fall this year

Vesuvius, a molten metal flow engineering company, said it expects its 2013 revenue to fall following restructuring and disposals.

Vesuvius, a molten metal flow engineering company, said it expects its 2013 revenue to fall following restructuring and disposals.

Trading has been broadly flat this year and production of steel and foundry has been affected by difficult market conditions, according to an interim statement Friday.

Production fell 5.0% in Europe and North America in in the first four months of the year, offsetting a 6.4% growth in Asia.

The company said activity globally in the steel industry remains flat, and indicators in general are still mixed.

The foundry industry was affected by negative trends including lower auto production in Europe, particularly in Germany, and less casting volumes in South America.

Downward pricing pressures also continued to affect the sector. The group is working on improving its position to mitigate the impact and maintain its trading margins.

In March, the group announced the sale of its Precious Metals Processing division to Possehl for €56.8m. The disposal remains on track for completion by the end of this quarter following approval by Possehl's supervisory board.

Since its last results reported at December 31st, there has been no material change in the company's financial position but it expects revenue in 2013 will be lower than in 2012.

"However, we are starting to see the benefits of our self-help restructuring actions coming through and we are confident this will deliver improved trading margins later in 2013," the group said.

Vesuvius said it continued to operate with a strong balance sheet and is maintaining its focus on working capital management.

RD

Recommended

Imperial Brands has an 8.3% yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% yield – but what’s the catch?

Tobacco company Imperial Brands boasts an impressive dividend yield, and the shares look cheap. But investors should beware, says Rupert Hargreaves. H…
20 May 2022
Investing in drugmakers: uncommon profits from curing rare diseases
Share tips

Investing in drugmakers: uncommon profits from curing rare diseases

Treatments for medical conditions with only a small number of sufferers can still be very attractive for pharmaceutical companies and investors becaus…
20 May 2022
Share tips of the week – 20 May
Share tips

Share tips of the week – 20 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
20 May 2022
Delivering profits: should you buy Royal Mail shares?
Share tips

Delivering profits: should you buy Royal Mail shares?

The volume of parcels delivered by Royal Mail soared during the pandemic, and so did its profits. But it has been coming under pressure lately. So, as…
19 May 2022

Most Popular

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
18 May 2022
Aviva: a share for income investors to tuck away
Share tips

Aviva: a share for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
18 May 2022
Inflation is now at its highest since 1982 – is this the peak?
Inflation

Inflation is now at its highest since 1982 – is this the peak?

At 9%, UK inflation is at its highest for 40 years – and it’s not going anywhere soon, says John Stepek. That means you need to be much more active a…
18 May 2022