24 April 2014
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 2014.
Commenting on the Company's performance during the quarter Group Chief
Executive, David Dutro, said:
"Elementis has started the year with good sales momentum across its broad based
growth platform and we anticipate full year earnings will be in line with
market expectations.
As noted at the time the Group reported its Final Results, short term weather
issues impacted our North American based coatings, oilfield and chromium
businesses in January and February, as snow and unusually cold temperatures
disrupted transportation and caused some customers to temporarily close plants.
Despite these impacts Specialty Products still posted solid growth with stable
margins and, although sales volumes in Chromium, the division with the highest
dependency on North America, were slightly below the previous year, its
operating profit was comfortably ahead of the comparative period.
Coatings additives continued to experience strong growth in Asia Pacific and
Latin America and our investment in our new North American facility in New
Martinsville continues to show good progress, delivering innovative additives
to the decorative coatings market. This contributed to our coatings business in
the region delivering an attractive growth rate.
Oilfield additives had a slower, weather affected, start to the year but we
continue to believe that the underlying market drivers of this business remain
positive, as evidenced by good growth in March.
Personal care posted another successful quarter based on geographic expansion
and new product launches."
In Specialty Products, sales volumes in the first quarter were 3 per cent
higher than the same period last year with currency having no material impact
on sales or operating profit and operating margins remained stable.
* In coatings additives, sales volumes in North America were 6 per cent
higher than the previous year, with good growth in decorative coatings
driven by the introduction of new innovative products from the recently
commissioned facility in New Martinsville. Sales volumes in Latin America
were 9 per cent higher as synergies from the Watercryl acquisition
continued to deliver growth, albeit with some short term currency headwinds
due to fluctuations in the Brazilian Real. Sales volumes in Asia Pacific
were 8 per cent higher as the business continued to benefit from market
share gains in China and good progress in other countries. In Europe it is
pleasing to report that sales volumes grew by 2 per cent, in what continues
to be a subdued economic environment.
* In personal care, sales volumes were 49 per cent higher than the same
period last year with good growth in Asia Pacific and Latin America, where
additional resources were recently introduced, and the team continued to
successfully expand the business both geographically and through new
product introductions.
* Sales volumes in oilfield were 18 per cent lower than the first quarter of
2013, although March volumes were ahead of the previous year. While the
colder winter in North America is expected to be positive for the business
in the medium term, driving increased drilling activity, the first quarter
was impacted by the short term effects related to weather disruptions and
customer order patterns.
In Chromium, sales volumes influenced by weather issues were 3 per cent lower
than the previous year but, with strong sales in higher margin applications,
operating profit in the period was in line with management expectations.
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 + 44 (0) 207 408 9300
David Dutro, Chief Executive
Brian Taylorson, Finance Director
FTI Consulting + 44 (0) 207 831 3113
Deborah Scott
Matthew Cole