Vesuvius Announces “Record Performance” in 2018
Vesuvius reported revenue of approximately £1.8 billion (~ $2.4 billion) in 2018, an increase of 6.8% vs. 2017 on a reported basis.
Vesuvius plc recently announced its preliminary audited results for the year ended December 31, 2018. Group revenue was approximately £1.8 billion (~ $2.4 billion) in 2018, an increase of 6.8% vs. 2017 on a reported basis. Underlying group revenue, adjusted for the effects of foreign exchange and disposals, increased by 10.7% (volume 4.9%, price 5.8%). Trading profit for the year was £197.2 million (~ $259.3 million), up 19.1% on a reported basis and 24.1% on an underlying basis, compared to 2017.
“2018 was a year of record performance for Vesuvius, underpinned by the benefits derived from our self-help restructuring programs and strong commercial performances, combined with a positive orientation in the majority of our steel and foundry end markets,” said Patrick André, chief executive. “Looking forward, we plan to continue growing our revenue and accelerate and intensify efforts to optimize our costs, to support our drive towards further profitable growth. For these reasons, and despite a less favorable market environment, the board is confident that, in comparison to 2018, further progress will be made in 2019.”
Vesuvius’ Steel division reported revenues of £1.2 billion (~ $1.6 billion) in 2018, an increase of 7.7% compared to 2017. On an underlying basis, Steel Division revenue was up 11.9%. This higher growth rate relative to global steel production is reportedly a result of: high exposure of Flow Control to the fastest-growing segment of the steel market, market share gains in Flow Control, and selling price increases in both Flow Control and Advanced Refractories mitigated by a decrease in market share for Advanced Refractories in some regions where priority was given to selling price increases to offset raw material and other cost inflation.
The Foundry division reported revenues of £561.3 million (~ $738.1 million) in 2018, an increase of 4.9% compared to 2017 on a reported basis, while underlying revenue increased 8.2%. On a reported basis, trading profit for the division improved 5.7% year-on-year. Sales growth in 2018 reportedly benefited from market share gains in the key product lines of feeding systems, filters and coatings, as well as selling price increases. Trading profit also benefited from the ongoing organizational restructuring in Europe and North America, which is now focused on a rationalized, leaner structure. However, overall profitability was impacted by a time lag in selling price increases to compensate for raw material and other cost inflation, particularly in North Asia. Fused Silica, a specialized product line, also suffered from significant market weakness in the fourth quarter, particularly in China and EMEA, where customers chose to delay purchases and extend year-end maintenance shutdowns.
Additional details are available at www.vesuvius.com.