Vesuvius - 2016 Half Year Results

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First half progress in a marginally firmer trading environment

Vesuvius plc, a global leader in molten metal flow engineering, announces its results for the six months ended 30 June 2016.

Financial summary

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(1) Underlying basis is at constant currency and excludes separately reported items and the impact of acquisitions
(2) For definitions of non-GAAP measures, refer to the notes in the financial statements
(3) Headline results refer to continuing operations and exclude separately reported items

Key Points:

  • Revenue, profit and return on sales in line with expectations
  • Global steel and foundry markets showing signs of stabilisation; albeit mixed and at weak levels
  • Improvement in revenue and margins compared to H2 2015
  • Restructuring programme delivered £7.1m cost savings in H1 2016 vs 2015 cost base
  • Total annual restructuring programme benefits increased to £25m by the end of 2017 at a total cost of £35m
  • Improved debtor provision coverage of £3.7m
  • Strong cash performance, with cash conversion of 111%
  • Maintained interim dividend of 5.15 pence per share to be paid on 23 September 2016

François Wanecq, Chief Executive of Vesuvius, commented:

“We have delivered an encouraging result in the first half of 2016, with an improvement in financial performance relative to the second half of 2015. This reflects the strength of our market position and progress in implementing our self-help initiatives and ongoing restructuring programme. Our end markets in steel and foundry are showing signs of stabilisation, although we expect them to remain at relatively weak levels for the remainder of the year.

Based on our strategic and operational progress in the first half, and assuming current exchange rates continue for the rest of the year, our full year expectations remain unchanged. We remain confident in our ability to capitalise on any recovery in our addressable markets in the medium term.”

For further information, please contact:

Shareholder/analyst enquiries:
Vesuvius plc
François Wanecq, Chief Executive
+44 (0) 207 822 0000
Guy Young, Chief Financial Officer
+44 (0) 207 822 0000
Virginia Skroski, Investor Relations Manager
+44 (0) 207 822 0016

Media enquiries:
MHP Communications
John Olsen/ Jamie Ricketts/ Ollie Hoare
+44 (0) 203 128 8100

Vesuvius management will make a presentation to analysts and investors on 29 July 2016 at 10.30am (BST) at Bank of America Merrill Lynch, 2 King Edward Street, London EC1A 1HQ. For those unable to attend in person, an audio webcast and conference call will also be available (UK participant dial in +44(0)20 3364 5721; US participant dial in +1 646 254 3362; confirmation code 7676096). This presentation will be broadcast live on Vesuvius’ website, <link http: investor-relations>

and an archive version of the presentation will be available on the website later that day.

Source: Vesuvius

Company Info

Vesuvius GmbH

Gelsenkirchener Straße 10
46325 Borken

Telephone: +49286183207