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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020