Elementis PLC AGM Trading Statement (2756J)
26 Abril 2022 - 1:00AM
UK Regulatory
TIDMELM
RNS Number : 2756J
Elementis PLC
26 April 2022
Elementis plc
AGM Trading Statement
Robust first quarter trading performance
Chromium strategic review
Elementis plc ("Elementis" or the "Group"), a global specialty
chemicals company, today issues a trading update for the three
months ended 31 March 2022 and announces a strategic review of
Chromium.
First Quarter Business Performance
Trading for the three months ended 31 March 2022 has been
positive. Revenue increased approximately 7% on an underlying
basis* against the prior year period, driven by pricing actions,
new business wins and continued demand recovery in Personal
Care.
-- Coatings revenue and margins increased on the prior year
period. Successful pricing actions and an improved mix more than
offset lower volumes linked to supply chain disruptions and weaker
industrial activity in China, as well as rising raw material,
energy and logistics cost inflation.
-- Personal Care performance improved materially as social
restrictions eased further and our growth initiatives continued to
gain momentum. Margins were strong due to successful pricing
actions. The ramp-up of our new plant in India continues to
progress at pace.
-- In Talc, while successful pricing actions more than offset
cost inflation, performance declined on the prior year period due
to weaker European automotive production and a strike throughout
the first quarter at our main paper customer in Finland.
-- Chromium performance declined as an unexpected temporary
plant outage impacted volumes. Pricing continued to show positive
momentum, more than offsetting increased costs.
Cash generation in the first quarter was in line with
expectations and the Group's business model remains highly cash
generative.
Strategic Update
The Group today announces it has initiated a strategic review of
its Chromium business. The review will establish whether the full
potential of Chromium can best be delivered as part of Elementis,
or, via a full or partial divestment. It will consider the
practicality of all options, whilst prioritising the best interests
of all stakeholders, including employees, customers and
shareholders.
Outlook
The year has started well with improved profitability, driven by
self-help actions, positive momentum in Personal Care and
underlying strength in Coatings. For the full year, we are
confident that further strategic progress will drive improved
financial performance and a reduction in leverage, in line with
expectations.
Commenting on today's announcement, CEO, Paul Waterman said,
"We have made a good start to the year and will continue to
maintain our focus on self-help actions and effectively managing
the challenging external supply chain environment, demand
uncertainties and rising inflation. We remain on-track to deliver
$50m of new business opportunities, over 20 new products and
progress towards $10m of additional efficiency savings by 2023.
In line with our Innovation, Growth and Efficiency strategy, we
have focused Elementis on high quality Personal Care, Coatings and
Talc performance additive businesses which hold enduring positions
of strength in growing markets, and today represent approximately
90% of Group profits. In this context we will execute a strategic
review of our Chromium business to determine whether Elementis
remains the best owner."
Enquiries
Elementis
James Curran, Investor Relations 020 7067 2994
Tulchan
Martin Robinson 020 7353 4200
Olivia Peters
Notes: Adjusted for constant currency impact
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFSDSEIEFIF
(END) Dow Jones Newswires
April 26, 2022 02:00 ET (06:00 GMT)
Elementis (LSE:ELM)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Elementis (LSE:ELM)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024