14th May 2015 07:21
LONDON (Alliance News) - Molten flow engineering company Vesuvius PLC Thursday said it expects to meet market expectations for 2015 as mixed market conditions continued in the first four months of the year but margins improved, and it said it has struck a deal to acquire Italy's Sidermes Group for an undisclosed amount.
Vesuvius said, as anticipated, conditions in its market remain mixed and it expects the underlying trading environment to remain broadly similar to the first four months through the remainder of 2015. Its trading performance for the year is expected to be in line with the market view.
Group revenue in the first four months to the end of April was GBP474.9 million, down 2% year-on-year due to weaker trading activity in North America, Europe, the Middle East and Africa and in South Asia. This was partially offset by better performances in South America, India, North Asia and China, it said. Revenue was down 1.3% at constant currencies.
Despite the fall in revenue due to the weaker market conditions, the group said it has seen margin improvement in the first four months and continues to implement measures to improve operational efficiency and drive cash generation.
Elsewhere, Vesuvius said it has struck a deal to buy Sidermes, an Italy-based supplier of measurement probes and systems for the steel and foundry industries. Vesuvius will integrate the business into its Technical Services arm with its Steel division it said. The deal is expected to complete this month.
Vesuvius shares were down 2.6% to 443.996 pence on Thursday morning, one of the worst performers in the FTSE 250 just after the open.
By Sam Unsted; [email protected]; @SamUAtAlliance
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