30th Jul 2020 12:32
Vesuvius PLC - London-based molten metal flow engineering company - Revenue down 19% year-on-year to GBP720.0 million in the half-year to June 30 from GBP889.4 million. The drop in revenue is caused by significantly lower global steel production and industrial output across the world. Pretax profit drops 56% to GBP34.6 million from GBP78.6 million a year prior. Vesuvius skips its interim dividend, having paid 6.2 pence last year. Cuts GBP20 million in capital expenditure to ensure a strong cash position going forward. The dividend will be reviewed as the year progresses. Looking forward, the first signs of improvement are now apparent in both steel and foundry, but Vesuvius says expects the pace of the recovery to be slow over the coming months. Doesn't offer guidance going forward due to the volatility of the markets, but is confident of its position to take advantage of the markets recovery thanks to the optimisation of its manufacturing footprint over the past year.
Current stock price: 399.80 pence
Year-to-date change: down more than 20%
By Greg Roxburgh; [email protected]
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