Vesuvius tumbled on Monday after the molten metal flow engineer downgraded its outlook for the year.
Source: Sharecast
In a brief trading statement, the company said trading profit for the first half is expected to be around £74m. Vesuvius said that since its update in May, it has continued to be affected by operational issues in the steel division.
Additionally, Advanced Refractories is experiencing a "challenging" trading environment, it said, particularly in Europe.
"The operational issues, whilst temporary, are causing a greater impact than previously anticipated," Vesuvius said. "They are being addressed and are expected to be resolved by the end of the year.
"Accordingly, we now expect full-year trading profit to be slightly ahead of trading profit for FY25 on a constant currency basis."
At 1035 BST, the shares were down 10% at 406.60p.
Jefferies, which has a ‘buy’ rating and 520p price target on the stock, said trading profit slightly ahead of last year at constant FX would imply a low double digit cut to FY26 consensus.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
