19th Nov 2015 08:25
LONDON (Alliance News) - Molten flow engineering company Vesuvius PLC saw its shares decline early Thursday after it said its results will come in at the low end of market expectations due to ongoing deterioration in conditions in the steel and foundry markets.
The FTSE 250-listed company said its sales for the year to date are down 5.2% year-on-year in constant currencies, though margins are broadly flat due to cost-cutting actions the company has taken.
But the group continues to be hit hard by the tough conditions in the global steel industry, where production in September was down 2.4% year-on-year thanks to heavy declines in China and Europe, while the foundry market also remains challenging, hit severely by a downturn in mining activity in the US, Brazil and Australasia.
Due to these concerns, the group expects its earnings before interest, taxation and amortisation, adjusted to exclude restructuring and one-off items, to be at the low end of market expectations.
Vesuvius shares were down 2.5% to 330.50 pence on Thursday morning, one of the worst performers in the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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