Elementis Regulatory News (ELM)

24 April 2014 AGM / Interim Management Statement Elementis plc (ELM.L, the "Company" or the "Group"), the Global SpecialtyChemicals Company, today issues its Interim Management Statement for the threemonths ended 31 March 2014. Commenting on the Company's performance during the quarter Group ChiefExecutive, David Dutro, said: "Elementis has started the year with good sales momentum across its broad basedgrowth platform and we anticipate full year earnings will be in line withmarket expectations. As noted at the time the Group reported its Final Results, short term weatherissues impacted our North American based coatings, oilfield and chromiumbusinesses in January and February, as snow and unusually cold temperaturesdisrupted transportation and caused some customers to temporarily close plants.Despite these impacts Specialty Products still posted solid growth with stablemargins and, although sales volumes in Chromium, the division with the highestdependency on North America, were slightly below the previous year, itsoperating profit was comfortably ahead of the comparative period. Coatings additives continued to experience strong growth in Asia Pacific andLatin America and our investment in our new North American facility in NewMartinsville continues to show good progress, delivering innovative additivesto the decorative coatings market. This contributed to our coatings business inthe region delivering an attractive growth rate. Oilfield additives had a slower, weather affected, start to the year but wecontinue to believe that the underlying market drivers of this business remainpositive, as evidenced by good growth in March. Personal care posted another successful quarter based on geographic expansionand new product launches." In Specialty Products, sales volumes in the first quarter were 3 per centhigher than the same period last year with currency having no material impacton 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 lowerthan 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 ina net cash position at the end of the year. Enquiries: Elementis + 44 (0) 207 408 9300David Dutro, Chief ExecutiveBrian Taylorson, Finance Director FTI Consulting + 44 (0) 207 831 3113Deborah ScottMatthew Cole