AGM Statement

RNS Number : 1771D

Elementis PLC

25 April 2013

 



25 April 2013

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 2013.

Commenting on the Company's performance Group Chief Executive, David Dutro, said:  "In the first three months of 2013 we have made a solid start to the year, particularly as we are comparing our performance to a very strong quarter in 2012. We continue to benefit from the diverse nature of our business, both in terms of geography and end market. At Elementis we are committed to creating our own growth opportunities in an uncertain economic environment and the Group has a number of exciting growth initiatives that are at an early stage of development, including the new coatings additives plant in North America, as well as the acquisitions of Watercryl in Brazil and Hi-Mar in the US. Each of these should add momentum to our performance as the year progresses. Overall, we anticipate full year earnings will be in line with market expectations."

In Specialty Products, sales volumes in the first quarter were 7 per cent higher than the same period last year with good progress in all key business areas.

·    In coatings additives, sales volumes in North America were 3 per cent higher than the previous year, while volumes in Latin America were 134 per cent higher, as each region benefited from the recent acquisitions of Hi-Mar in North America and Watercryl in Latin America. Volumes in Asia Pacific were 4 per cent higher, while in Europe sales volumes grew by 7 per cent as the business continued to succeed in identifying new business opportunities to offset underlying economic weakness.

·    In personal care, sales volumes were 4 per cent higher than the same period last year.

·    Sales volumes in the oil and gas drilling sector improved significantly in the current period compared to the second half of 2012, when an industry inventory adjustment caused a temporary downturn in order patterns. As a result, sales volumes in the first quarter were 61 per cent higher than the average quarterly sales in the second half of 2012 and only 5 per cent below the first quarter of 2012, which was the strongest sales quarter in the business's history.

In Chromium, as expected, first quarter sales were impacted by a scheduled plant maintenance shutdown. The business operates a pro-active maintenance programme, designed to ensure a stable operating performance with extended periods between shutdowns. The previous maintenance shutdown was done during the second half of 2011, so sales in the first quarter of 2012 were unaffected. The most recent maintenance was carried out in the early part of 2013, thereby reducing sales volumes in the first quarter and, as a consequence, sales volumes were 15 per cent lower than the previous year. However, consistent with the strategy for this business of "stable earnings and cash flow", sales for the year as a whole are expected to be similar to 2012.

The Group's balance sheet remains in a strong position and is expected to be in a net cash position at the end of the year.

Enquiries:
Elementis		[phone]
Brian Taylorson, Finance Director
FTI Consulting		[phone]
Deborah Scott
Matthew Cole

 

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