Business
AGM Trading Update
AGM Trading Update.
About this update from Vesuvius Plc
[{"type":"text","content":"\n \n \n 18 May 2022 \n \n \n AGM Trading Update\n \n \n \n Strong start to the year despite softer end markets\n \n \n \n \n \n \n Vesuvius plc (\"Vesuvius\", the \"Group\"), a global leader in molten metal flow engineering, releases the following Trading Update in conjunction with its Annual General Meeting being held today.\n \n \n \n \n \n \n TRADING\n \n \n \n Our sales performance in the first four months of 2022 was stronger than expected.\n \n \n \n \n \n Positive volume growth in our Steel division was supported by market share gains, particularly in Flow Control, across all key regions. Foundry division volumes were broadly in-line with the equivalent period of 2021 as we experienced continued weakness in automotive end markets.\n \n \n \n \n \n In parallel, our active management of selling prices has successfully offset all cost inflation to date. As a consequence of this positive volume and pricing environment, our trading profit in the first four months of 2022 increased by more than 60% on a constant currency basis relative to both the equivalent period at the start of 2021 and the last four months of 2021. Our Return-on-Sales also improved materially.\n \n \n \n \n \n \n The integration of the Universal Refractories business is proceeding as planned, with performance marginally ahead of our expectations set at the time of the acquisition in December 2021.\n \n \n \n \n \n \n \n In line with the position set out at our 2021 full year results, we have ceased trading with all sanctioned customers in Russia. We are in the process of winding down remaining contractual obligations with other customers in the country. We will review our position on this latter point at mid-year based on the evolution of the conflict and an assessment of the effectiveness of these measures.\n \n \n \n \n \n \n \n END MARKETS\n \n \n \n Steel production in Q1 2022 decreased by 2.2% compared to Q1 2021 in the world excluding China, which accounts for approximately 90% of our sales, as reported by the World Steel Association. This reflects a broad-based weakening across all regions, except for India, South East Asia and Mexico. EMEA was especially weak in Q1 2022 with production down 5.1%. In relation to our foundry markets, global light vehicle and heavy commercial vehicle production have decreased by 4.9%...