11th Nov 2021 14:32
Vesuvius PLC - London-based molten metal flow engineering firm - Says steel production and demand remains strong in period from July 1 to October 31, expect for China, which has seen significant month-on-month production declines due to state intervention to reduce production and due to restrictions on power usage, company says.
Notes Foundry end-markets across most regions also remain strong, with the exception of the automotive industry, where, despite robust demand, production growth has significantly underperformed expectations due to the continued global shortage of semi-conductor and supply chain difficulties.
"These challenges are now expected to persist well into 2022 with automotive market production forecasts revised materially downwards as a result," Vesuvius adds. "We have successfully implemented price increases during 2021, in order to offset the ongoing impact of much higher freight and raw material costs, which have continued to increase in recent months."
Says revenue growth to October was broadly in line with internal expectations, and expects 2021 trading profit to be in line with current analyst expectations, but towards the lower end of the range of GBP137 million and GBP147 million.
Current stock price: 477.80 pence, up 1.4% on Thursday
Year-to-date change: down 11%
By Paul McGowan; [email protected]
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