Elementis PLC Q3 Trading Update (0982E)
26 Octubre 2022 - 1:00AM
UK Regulatory
TIDMELM
RNS Number : 0982E
Elementis PLC
26 October 2022
26 October 2022.
Elementis plc
Q3 Trading Update
Trading in line with expectations - outlook unchanged
Elementis plc ("Elementis" or the "Group"), a global specialty
chemicals company, today issues a trading update for the three
months ended 30 September 2022.
Third quarter business performance
The Group delivered a good performance in the third quarter,
with double-digit revenue growth on an underlying basis, driven by
further strong performances in Personal Care and Coatings, where
the focus on innovation, new product development and new business
opportunities, underpinned by strong key account relationships and
supply resiliency, continued to deliver sales growth. The Chromium
business also performed well in the quarter whilst the Talc
business continued to be impacted by weakness in European
markets.
Overall the Group saw strong performances in the Americas, with
lower demand in Europe and continuing market weakness in China. The
full year outlook for the Group remains unchanged.
-- Coatings delivered a solid third quarter performance. Pricing
actions continued to offset raw material and energy cost increases
and protect margins. Sales growth was driven by new business wins
at key accounts and market share gains, with new products gaining
further traction The business remains on track to deliver full year
performance significantly ahead of last year.
-- Personal Care continued to perform strongly in the third
quarter, with market demand and pricing actions in both Cosmetics
and AP Actives driving strong sales growth and margin expansion
versus the prior year period. Whilst normal seasonality and some
moderation of demand is expected in the fourth quarter, the
business is expected to deliver full year performance substantially
ahead of last year.
-- Talc performance in the third quarter was impacted by
continuing weaker demand in European end markets, in particular
automotive, reduced ceramics demand in China, and the loss of sales
into Russia and neighbouring countries. Higher energy and logistics
costs, as well as adverse currency movements, were offset by new
business wins and price increases which will continue to be
implemented through the rest of the year.
-- Chromium sales in the third quarter were ahead of the prior
year period, reflecting solid demand and price increases. Global
industry utilization remains high, with improved pricing and lower
chrome ore prices offsetting higher energy and logistics costs. An
update on the strategic review of the Chromium business is expected
around the calendar year end, as previously indicated.
Outlook
The full year outlook for the Group remains unchanged, with
Group leverage lower.
Despite weakening underlying macro-economic conditions creating
further headwinds, particularly in Europe, the Group's continued
focus on innovation and new business opportunities, along with
further pricing actions and operating efficiencies, is expected to
deliver full year financial performance in line with our
expectations.
Commenting on the third quarter performance, CEO, Paul Waterman
said,
"We delivered a good third quarter performance, with our focus
on product innovation, customer relationships, value pricing and
operating efficiency continuing to create real momentum in our
business. This is enabling us to weather the macroeconomic
headwinds affecting a number of our markets, and deliver sales
growth and margin expansion in line with our expectations.
We expect the market environment to remain challenging, but are
confident that by continuing to execute effectively on our strategy
we will make further progress towards achieving our medium-term
goals."
Enquiries
Elementis plc
David Boyd, Investor Relations Tel: 0207 067 2994
David.boyd.ext@elementis.com Mob:+44 7764 905135
Tulchan
Martin Robinson Tel: 020 7353 4200
Olivia Peters
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END
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