AGM / Interim Management Statement

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                                                       
                                                                   
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