An encouraging update from Vesuvius (VSVS), with end-market activity on the rise via a 4.1 per cent year-on-year increase in global steel production. Vesuvius, a molten metal flow engineering specialist, has raised expectations for its trading performance for the year, despite a £1.6m negative currency translation effect, primarily the result of sterling appreciation against the US dollar.
Self-help measures are also feeding through to the bottom line. Management notes that it has been successfully passing raw material price increases through to customers. It also highlighted the successful ramp-up of Flow Control's European production, continued delivery of measures under the restructuring programme, together with incremental improvements in working capital management, rising cash flows and a reduction in net debt at the end of the first quarter.
