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Investing.com -- Vesuvius Plc (LON:VSVS) on Thursday issued a trading update ahead of its first-half 2025 results, signaling a more cautious outlook that will likely lead to consensus downgrades.
The company expects first-half 2025 Trading Profit of approximately £77 million, in line with management expectations.
However, Vesuvius now anticipates challenging market conditions to persist throughout the year, particularly in Europe and China.
Based on this outlook, the company forecasts full-year 2025 Trading Profit of around £155 million, below the current consensus estimate of approximately £171 million, representing a potential 10% reduction in expectations.
The pricing environment remains difficult, especially in Europe and China, which has limited Vesuvius’ ability to offset increased labor cost inflation during the first half of the year.
Management expects pricing conditions to improve in the second half, allowing for partial recovery of labor costs, though this improvement will likely be less than previously anticipated.
On a positive note, Vesuvius has expanded its cost-saving program, now expecting to exceed its previous target of £45 million in recurring savings by 2028.
The additional benefits could amount to approximately £10 million, potentially requiring around £15 million in near-term restructuring charges.
The company continues to see some positive developments in India and Southeast Asia, with certain markets showing stability. Vesuvius will release its first-half 2025 interim results on August 6.
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