ELM Elementis Plc

 
TIDMELM 
 
22 April 2015 
 
Elementis plc - 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 2015. 
 
Commenting on the Company's performance Group Chief Executive, David Dutro, 
said: "Despite subdued global economic activity,the Elementis team has 
delivered encouraging results in the first quarter of 2015 and we remain 
confident in the Group's prospects for the coming year. Moving forward our 
strategy is clear and focused on delivering long-term shareholder value. We 
remain resolute in our commitment to outperform our competitors by providing 
innovative products and solutions that make our customers more successful. We 
have continued to invest in the future growth of our Specialty Products 
business andalthough we are currently in the phase of absorbing the additional 
related costs,these investmentsare the building blocks of an exciting future". 
 
Currency 
Consistent with the Group's Final Results statement in February this year, 
currency movements reduced Group sales for the first quarter by 5 per cent 
compared to the same period last year, however, operating profit was impacted 
by less than 1 per cent, assisted by the Group's hedging programme. In order to 
provide a clearer understanding of the Group's underlying performance the 
following business commentaries focus on constant currency sales ("CC sales"). 
 
In Specialty Products, CC sales in the first quarter were 3 per cent higher 
than the same period last year and operating margins improved by 50 basis 
points, assisted by currency movements. 
 
  * In coatings additives, CC sales in North America were 4 per cent higher 
    than the previous year, with good growth in decorative coatings as a result 
    of new innovative products from the recently commissioned facility in New 
    Martinsville. Sales in Latin America were 9 per cent higher as the business 
    continued to successfully expand sales outside of Brazil. Sales in Asia 
    Pacific were 5 per cent higher, benefiting from ongoing market share gains 
    in China and good progress in other countries. In Europe, despite 
    relatively subdued economic activity, sales grew by 5 per cent due to new 
    product launches in decorative applications and market share gains. 
 
  * In personal care, CC sales were 6 per cent higher than the same period last 
    year with good growth in North America, Asia Pacific and Latin America. The 
    business team continues to successfully expand the business both 
    geographically and through new product introductions. 
 
  * As anticipated, CC sales in oilfield were 13 per cent lower than the first 
    quarter of 2014, as lower oil prices impacted on drilling activity across 
    most of the customer base. 
 
In Chromium, there was no significant currency translation impact on sales and 
operating profit. Sales volumes in the first quarter were 7 per cent lower than 
the same period last year as demand for refractory grade chrome oxide, which 
was particularly strong in 2014, returned to more normal levels following the 
completion of a number of significant customer projects. Otherwise sales in 
leather tanning and timber treatment continued to show good growth. Fixed costs 
in the period benefited from plant optimisation activities and the positive 
resolution of some legacy issues. While markets outside of North America 
continue to be challenging, management expects a full year result that is in 
line with the business's stated strategy of "stable earnings and cash flow". 
 
The Group's balance sheet remains strong and is expected to be in a net cash 
position at the end of the year which, under our current special dividend 
policy, will continue to provide shareholders with attractive returns. 
 
                                     ENDS 
 
Enquiries: 
 
Elementis                       + 44 (0) 207 408 9300 
David Dutro, Chief Executive 
Brian Taylorson, Finance Director 
 
FTI Consulting                  + 44 (0) 203 727 1000 
Deborah Scott 
Matthew Cole 
 
 
END 
 

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