Business
Q3 2018 Trading Update
Q3 2018 Trading Update.
About this update from Vesuvius Plc
[{"type":"text","content":"\n \nRNS Number : 4108G Vesuvius plc 06 November 2018 \n\n\n \n6 November 2018\nQ3 2018 Trading Update\n \nVesuvius plc (\"Vesuvius\", the \"Group\"), a global leader in molten metal flow engineering, releases the following Trading Update in conjunction with its Capital Markets Day being held today.\n \nSUMMARY & OUTLOOK\nWe continue to deliver a strong performance across all business units and regions of the world. As a result, we expect our full year Trading Profit (EBITA) to be in-line with current consensus market expectations (1), even after taking into account an increase in the foreign exchange headwind.\n \nTRADING\nThe Group continues to benefit from growth in steel production, which in Q3 2018 versus Q3 2017 has increased 2.6% in the world excluding China and 4.3% including China, as reported by the World Steel Association. In Foundry, the market environment remains positive across the majority of our end markets.\nVesuvius' sales volume growth has continued to outperform underlying market growth.\nDelivery of our previously communicated restructuring programmes has continued as planned during Q3 2018 and we remain on track with our plan to improve our profitability on a sustainable basis.\n \nFOREIGN EXCHANGE\nThe impact of exchange rate movements during 2018 has increased since our H1 results, due primarily to further currency depreciation in many of the developing markets in which we operate. Without this increased foreign exchange headwind our expectations for full year Trading Profit would have been approximately 5% higher. \n \nFINANCIAL POSITION AND WORKING CAPITAL\nWorking capital continues to show incremental improvement, cashflow remains strong and we are consistently reducing our leverage quarter on quarter. \n \nCAPITAL MARKETS DAY\nThe presentation being given today at our Capital Markets day is to provide more detail on the company's markets, its technologies, its strategy and the initiatives that support the delivery of a target 12.5% Return on Sales in 2020. The presentation will be available on our website from 9am and an audio recording of the event will be available later today.\n \nNote: (1) The current market consensus for Trading Profit (EBITA) in 2018 based on Vesuvius' internal calculations is £195m (before separately reported items) \n \nFo...