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Vesuvius PLC on Thursday said cost savings, acquisition synergies, price rises and the improving momentum expected across key markets should support an improved second half of 2026. The London-based molten metal flow engineering and technology company said revenue and trading profit over the first four months of the year were slightly ahead of last year on a constant currency basis, including the benefit of Molten Metal Systems, bought from Advanced Materials PLC last year. The integration of MMS is ‘progressing well and contributing to performance, with the expected synergies being progressively delivered,’ the company added. Steel and Foundry divisions were able to increase prices sufficient to offset cost inflation, the firm noted. Steel volumes were slightly lower than the prior year, mainly due to some important customer closures in 2025, and temporary operational supply chain issues in North America. But Vesuvius saw improving trends into the second quarter and expects further recovery through the year. Cost savings plans remain on track with at least £10 million to be delivered in 2026 and cumulatively at least £55 million by 2028. In the Foundry division, the integration of MMS is progressing well, and the expected synergies are being delivered as planned, with further benefits expected. Expectations for the full-year are unchanged on a constant currency basis with a stronger second half compared to the first half. This is underpinned by the delivery of cost savings, MMS synergies, continued positive net pricing and the improving momentum anticipated across key markets, supported by the gradual improvement of the steel market, particularly in Europe. Shares in Vesuvius fell 2.9% to 457.97 pence each in London on Thursday. Vesuvius said steel production outside China, Ukraine, Russia and Iran increased by 2.5% in the first quarter of 2026 compared with the prior year, with the positive momentum already seen in India and South East Asia now extending to North America. Steel production volumes in Europe, Middle East & Africa and South America were below prior year levels, but this is anticipated to improve progressively in the second half of the year, particularly in Europe following the implementation of the new protective measures recently approved. Foundry markets remained soft across most regions; however, performance was supported by stronger demand in China and India and continued pricing discipline. In contrast to steel, end markets are expected to remain broadly stable over the remainder of the year. Vesuvius said the ‘on-going geopolitical uncertainty, driven by events in the Middle East’ had limited impact on end-markets and whilst the situation remains ‘volatile, we do not currently anticipate that our end markets will be materially impacted by these events during the remainder of 2026.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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