Vesuvius Sees Revenue Drop Almost 5% in 2016 First Half
Vesuvius plc recently announced its results for the six months ended June 30, 2016.
Vesuvius plc recently announced its results for the six months ended June 30, 2016. Revenue fell 4.9% to £668.3 million (approximately $872.7 million) from £702.6 million (~ $917.5 million) in the first half of 2015.
Revenue, profit, and return on sales were in line with expectations. Global steel and foundry markets are showing signs of stabilization, albeit at mixed and weak levels. The company’s restructuring program delivered £7.1 million (~ $9.3 million) in cost savings in the first half of 2016 vs. a 2015 cost base. Total annual restructuring program benefits are expected to increase to £25 million (~ $32.6 million) by the end of 2017 at a total cost of £35 million (~ $45.7 million). Debtor provision coverage improved by £3.7 million (~ $4.8 million), and the company had a strong cash performance, with a cash conversion of 111%. Interim dividends of £0.0515 per share (~ $0.067) were maintained and are to be paid on September 23, 2016.
“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,” said François Wanecq, CEO. “This reflects the strength of our market position and progress in implementing our self-help initiatives and ongoing restructuring program. Our end markets in steel and foundry are showing signs of stabilization, 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 capitalize on any recovery in our addressable markets in the medium term.”
For more information, visit www.vesuvius.com.