15th May 2014 13:12
LONDON (Alliance News) - Vesuvius PLC Thursday said market conditions remain broadly the same since it announced its 2013 results and its trading performance for the first four months of the year has been in line with Board expectations.
The company, which makes technology used by the steel and foundry casting industries, said that global steel production was 2.5% higher in the first quarter on the same period last year according to the World Steel Association, with particular improvements in Europe, which has shown a 5.9% increase in production volumes.
However, Vesuvius, which demerged from Cookson PLC in December 2012, said market conditions for the global foundry industry have continued to be mixed. It said the automotive industry has indicated that truck and light vehicle production has increased in Europe and North America but volumes in Brazil and India have been weaker.
In the company's 2013 results it reported a pretax profit of GBP104.1 million for 2013, up from GBP17.2 million in 29012 when it booked GBP57 million of restructuring costs and GBP15.7 million of demerged costs.
During the year, Vesuvius sold its precious metals processing division and exited other low-margin businesses that it decided weren't a part of its future.
However, the company said in March that it expects markets to remain challenging in 2014 and hence it is again relying on operational improvements to boost its performance. It is also facing a further hit from the recent strength of sterling.
On Thursday, it said that it continues to expect that the underlying trading environment during 2014 will be broadly similar to what it experienced in 2013 and it remains confident in its expectations for the year.
Vesuvius shares were up 0.4% to 446.80 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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