Elementis PLC Q3 Trading Update
RNS Number : 4938Q
28 October 2021
Q3 Trading Update
Financial recovery continues
Outlook unchanged, in line with expectations
Elementis plc ("Elementis" or the "Group"), a global specialty
chemicals company, today issues a trading update for the three
months ended 30 September 2021.
Third quarter business performance
The Group has delivered a strong third quarter performance as
trading continues to improve with revenue up 16% on an underlying
basis, driven by higher volumes and pricing actions. While there
are material global supply chain challenges, such as raw material
availability, logistical bottlenecks and rising inflation, we are
successfully managing these impacts via supply resiliency,
self-help actions and the implementation of price increases. As a
result, our 2021 outlook is unchanged.
-- Coatings continued to perform well with strong revenue growth
versus the prior year period, as robust industrial coatings
activity more than offset a moderation in European decorative
demand. Despite cost inflation headwinds, the combination of
pricing actions and continued growth will keep the business on
track for improved operating margins versus the prior year.
-- Personal Care performance improved on the prior year period
as demand continued to show signs of recovery from COVID-19 lows,
particularly in cosmetics, as social and travel restrictions began
to ease, albeit still at levels below 2019. As expected, the new AP
Actives plant in India started up in Q3 and a 12 month ramp up is
now in progress.
-- Talc revenue rose modestly on the prior year period as
semi-conductor related supply challenges significantly reduced
global automotive production. Pricing actions and cost savings, in
response to increased logistics and energy costs, are expected to
support a sequentially improved second half performance.
-- Chromium performance improved on the prior year, as demand
strengthened in areas such as aerospace and refractory. Global
industry utilisation levels continued to improve and, if sustained,
should result in improved pricing in 2022.
We have continued to successfully deliver against our
Innovation, Growth and Efficiency strategy. In 2021 we expect to
launch over 20 new products, win more than $35m of new business,
and deliver $10m of in year cost savings.
The full year outlook remains unchanged; the Group expects to
deliver an improved financial performance and a reduction in
leverage, in line with expectations.
The second half of the year is expected to follow a normal level
of seasonality, with continued demand recovery and self-help
actions mitigating the impact of near-term margin headwinds from
accelerating cost inflation and supply chain constraints.
Commenting on the performance, CEO, Paul Waterman said,
"We have delivered a strong third quarter performance, have good
trading momentum and are taking proactive steps to mitigate both
rising inflation and global supply chain challenges. The delivery
of our strategy, alongside a continued post COVID-19 demand
recovery, is expected to drive a material, multi-year performance
improvement, underpin the delivery of our medium-term Group
financial objectives and generate significant shareholder
James Curran, Investor Relations Tel: 020 7067 2994
Martin Robinson Tel: 020 7353 4200
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 email@example.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
(END) Dow Jones Newswires
October 28, 2021 02:00 ET (06:00 GMT)
Gráfica de Acción Histórica
De Dic 2021 a Ene 2022
Gráfica de Acción Histórica
De Ene 2021 a Ene 2022