Elementis plc, a global specialty chemicals company, today issues a
trading update ahead of its interim results for the half year ending
June 30, 2009, which will be announced on August 3, 2009.
Trading patterns for the second quarter of the year appear to have
stabilized, following the significant drop in sales volume at the end
of last year.
In Specialty Products, sales volumes for the second quarter have
shown modest improvement over the first quarter, when sales volumes
were down by 33 per cent compared to the previous year. Customers
however remain cautious and are maintaining conservative levels of
inventory. Contribution margins and market share have remained
relatively stable throughout the first half of the year. In Asia, the
integration of Deuchem continues to progress well and the business
has benefited from robust demand in the Chinese domestic market.
In Chromium, trading in the second quarter has been similar to the
first, with sales volumes down by over 50 per cent compared to the
previous year. The closure of the Eaglescliffe, UK facility is
progressing as anticipated. The site has operated at a relatively
high production rate during the first half of the year in order to
transition the customer base and efficiently process the remaining
raw material ahead of the closure. This, together with some strategic
purchases of chrome ore in the remaining business, will lead to a net
investment in working capital during the first half, a position which
will reverse later in the year.
Consequently, it is anticipated that Specialty Products, Chromium and
the Group will have a positive operating profit for the first six
months of 2009, before previously announced one time closure and
over-hedging costs. The Group is operating well within its banking
covenants.
- Ends
-
Enquiries
Elementis 020 7408 9300
David Dutro, Group Chief Executive
Brian Taylorson, Finance Director
Financial Dynamics 020 7831 3113
Andrew Dowler
Greg Quine
---END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.