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Vesuvius PLC on Tuesday described market conditions as ‘challenging but stable,’ with potential for a brighter steel outlook as countries introduce protective measures. The London-based firm specialises in molten metal flow engineering and technology. Its shares traded 1.2% higher at 378.40 pence on Tuesday morning in London. For the four months ended October 31, Vesuvius reported revenue ‘broadly in line’ with expectations. Excluding China, Iran, Russia and Ukraine, steel production edged up 0.5% from the previous year. This was ‘despite a higher level of demand, due to persistently elevated Chinese exports,’ Vesuvius said. Aside from growth in China and India, foundry end-markets have ‘remained weak but broadly stable,’ with the foundry segment seeing ‘temporary production inefficiencies’ during the four-month period. Vesuvius maintained claims of growing market shares in steel and foundry, though it is more optimistic on steel: ‘Looking ahead, there are an increasing number of protection measures against unfair trade in steel which are being gradually introduced by many countries, particularly in Europe and in the Americas, which are important markets for the Vesuvius steel division. ‘This, alongside domestic policy actions announced by the Chinese government to reduce production, should ultimately support a reduction in Chinese exports, and therefore support steel production outside of China,’ Vesuvius added. ‘Notwithstanding the continued tough external environment, due to our efforts around cost and pricing management, we anticipate trading profit for the full year to be broadly in line with our previous guidance.’ Back in August, the company predicted that second-half trading would be similar to the first half. For the six months that ended June 28, trading profit was £77.0 million, down 21% from £97.2 million the year prior. Revenue declined to £907.55 million from £936.5 million on-year. Vesuvius said it has offset second-half cost inflation by gradually raising prices, and within the company itself, a cost cutting scheme is in progress. Targets include £18 million in savings by the end of 2025, and at least £55 million in recurring savings by 2028. Additionally, Vesuvius plans to complete the purchase of Morgan‘s Molten Metals Systems from Morgan Advanced Materials PLC by mid-November. The deal will result in a £20 million cash outflow and the issue of new shares in Vesuvius subsidiary Foseco India Ltd, the firm said. It expects the acquisition to be accretive to earnings per share from 2026, with synergy realisation from 2027. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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