Vesuvius backs FY expectations despite weaker market conditions, shares slump

In an update for the 1 July to the end of October, the company pointed to a a gradual deterioration in most foundry end markets outside of India, particularly in Northern Europe.

Vesuvius said steel production levels outside of India have also weakened relative to the first half, in EMEA, South-East Asia and South America, and it expects this to persist throughout the remainder of the fourth quarter.

"Despite this, we continue to perform robustly, with our differentiated solutions supporting both good pricing performance and market share gains," it said.

"We are particularly pleased with the performance of our India business, which exposes us to one of the fastest growing Steel and Foundry production regions worldwide. We are continuing to gain share in that region enabled by our investments in high quality manufacturing facilities."

Vesuvius said the medium-term fundamentals for the steel and foundry markets remain positive.

"The capacity expansions in our higher-margin flow control business are close to completion and will support the growth regions of India, South-East Asia, Turkey, and Middle East and Africa," it said. "Capacity expansions in advanced refractories in India are also progressing well."

At 0920 GMT, the shares were down 6.3% at 396.20p.