27 April 2016
AGM / Interim Management Statement
Elementis plc (ELM.L, the “Company" or the “Group"), the Global
Specialty Chemicals Company, today issues its Interim Management
Statement for the three months ended 31 March 2016.
Commenting on the Company’s performance Group Chief Executive,
Paul Waterman, said: “During my
first two months at Elementis I have been impressed by the quality
of our people and the resilience of our business model. This is
best exemplified by the sustained level of contribution margins in
Specialty Products, the relative stability of the Chromium business
in North America and the Group’s
strong cash generation. Although some markets continue to be
challenging and we are cycling against a stronger first quarter in
2015, we are proactively managing our margins and cost base to
ensure that our performance for the year remains in line with
management expectations.”
In Specialty Products, sales performance in coatings and
personal care was satisfactory, while currency and lower oilfield
sales resulted in total sales being 7 per cent below the same
period last year. The following comments by division refer to
constant currency sales:
-
In coatings additives, sales in North
America were similar to the previous year as sales of
decorative products from the New Martinsville plant continued to
make good progress, while industrial sales remained subdued due to
the impact of the stronger dollar on consumer exports, as
previously reported. Sales in Europe were 1 per cent higher, while sales in
Asia Pacific were 1 per cent
lower, following the destocking and adjustment that took place in
the Chinese economy in the second quarter of 2015. Sales to
Latin America represent 5 per cent
of total coatings sales and were 9 per cent lower than the previous
year due to economic weakness in that region, particularly in
Brazil.
-
In personal care, sales were 4 per cent higher than the previous
period, as the business continued to benefit from geographic
expansion and new product sales.
-
Sales in oilfield drilling were broadly in line with the
quarterly sales run rate experienced in the second half of 2015,
following the sharp downturn in North American demand that took
place in the early part of 2015. Consequently, sales for the
current quarter were 37 per cent below the same quarter last
year.
As anticipated, Chromium sales for the first quarter were 11 per
cent lower than the previous year, as market conditions outside of
North America continued to be
challenging. Although sales in North
America were lower by 5 per cent, this is largely due to
order timing and sales for the first six months of the year are
expected to be in line with the same period last year. Sales
outside of North America were 19
per cent lower than the previous year, with volumes lower by 6 per
cent and pricing lower by 13 per cent.
The Group’s balance sheet remains strong and is again expected
to be in a net cash position at the end of the year which, under
our dividend policy, will continue to provide shareholders with
attractive returns.
ENDS
Enquiries:
Elementis
Paul Waterman, Chief Executive
Brian Taylorson, Finance Director |
|
+ 44 (0) 207 067
2999 |
|
|
FTI
Consulting
Deborah Scott
Matthew Cole |
|
+ 44 (0)
203 727 1000
|