LONDON (ShareCast) - (ShareCast News) - Vesuvius reported a decline in interim pre-tax profit due to a decline in global steel output and inventory volumes, which dragged revenue lower in the first half.
The molten metal flow engineering company said its pre-tax profit declined 6.1% year-on-year to £37.9m, while the drop in global steel output brought revenue 3.7% to £702.6m.

However, the FTSE 250 group said the decline in revenue was partly offset by an improvement in its return on sales to 10%, as the company rolled out a series of cost-cutting measures and implement changes aimed at improve productivity.

Vesuvius added it has begun a restructuring programme to address the changes developing in its end markets, indicating the plan will see the company booking a charge of approximately £20m in 2015 and 2016, with savings of £10m expected from 2017 onwards.

"In recent months, we have seen challenging end markets with a global decline in crude steel production, particularly in the US, our largest market," said group chief executive Francois Wanecq

"Against this backdrop, Vesuvius has made further strategic and operational progress."

Vesuvius shares were down 1.69% to 413.60p at 0901 BST on Friday.

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