Falling steel production in its core markets of North America and Europe, and the strength of the US dollar and sterling against competitor steel-producing countries, has hammered Vesuvius (VSVS). The molten metal flow engineer is restructuring its operations to reduce its exposure to those areas of decline it considers structural, but achieving this cost £14.6m in 2015, further worsening the bottom line.
The group's steel division, which accounted for almost two-thirds of trading profit, has been hit hardest. The steel flow control and advanced refractory businesses saw a 15 per cent reduction in sales in the Americas, Europe and Africa, but this was partly offset by a slight increase in the Asia Pacific region. Elsewhere, the expansion of its technical services business through a series of recent acquisitions helped to drive a £22.9m increase in sales.