15th May 2024 12:29
(Alliance News) - Vesuvius PLC on Wednesday said it has traded in line with expectations so far in 2024, but noted "subdued" steel markets in the first four months of 2024.
The London-based molten metal flow engineering firm said key markets have largely been softer.
"Steel end markets remained subdued at the beginning of the year, as anticipated, except for India, which continued to grow compared to the same period last year, and EEMEA which recovered from a low base following the earthquake in Turkey in 2023," Vesuvius said.
The EEMEA region includes parts of Europe, the Middle East and Africa, but excludes the EU and UK.
The firm added that steel output volume in the European Union and UK "continued to be subdued in the first quarter", though improved from the final quarter of 2023.
"Chinese steel exports have continued to increase significantly, triggering the introduction of trade protection measures in some countries, notably in South America," Vesuvius explained.
Elsewhere, foundry markets "remained weak", particularly in the EU and North Asia. These regions represent around 44% of its foundry sales. The foundry unit provides foundry consumables services, aiming to reduce casting defects. It offers binders, lining systems and coatings.
Vesuvius added that its cost savings programme is moving as planned. It is aiming for annualised cash cost savings of GBP30 million by 2026.
"The resilience of our business gives us continued confidence that we will deliver on our full year 2024 expectations," Vesuvius said.
Shares traded flat at 497.00 pence each in London on Wednesday afternoon.
By Eric Cunha, Alliance News news editor
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