Elementis Regulatory News (ELM)

22 April 2015 Elementis plc - 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 2015. Commenting on the Company's performance Group Chief Executive, David Dutro,said: "Despite subdued global economic activity,the Elementis team hasdelivered encouraging results in the first quarter of 2015 and we remainconfident in the Group's prospects for the coming year. Moving forward ourstrategy is clear and focused on delivering long-term shareholder value. Weremain resolute in our commitment to outperform our competitors by providinginnovative products and solutions that make our customers more successful. Wehave continued to invest in the future growth of our Specialty Productsbusiness andalthough we are currently in the phase of absorbing the additionalrelated costs,these investmentsare the building blocks of an exciting future". CurrencyConsistent with the Group's Final Results statement in February this year,currency movements reduced Group sales for the first quarter by 5 per centcompared to the same period last year, however, operating profit was impactedby less than 1 per cent, assisted by the Group's hedging programme. In order toprovide a clearer understanding of the Group's underlying performance thefollowing business commentaries focus on constant currency sales ("CC sales"). In Specialty Products, CC sales in the first quarter were 3 per cent higherthan the same period last year and operating margins improved by 50 basispoints, assisted by currency movements. * In coatings additives, CC sales in North America were 4 per cent higher than the previous year, with good growth in decorative coatings as a result of new innovative products from the recently commissioned facility in New Martinsville. Sales in Latin America were 9 per cent higher as the business continued to successfully expand sales outside of Brazil. Sales in Asia Pacific were 5 per cent higher, benefiting from ongoing market share gains in China and good progress in other countries. In Europe, despite relatively subdued economic activity, sales grew by 5 per cent due to new product launches in decorative applications and market share gains. * In personal care, CC sales were 6 per cent higher than the same period last year with good growth in North America, Asia Pacific and Latin America. The business team continues to successfully expand the business both geographically and through new product introductions. * As anticipated, CC sales in oilfield were 13 per cent lower than the first quarter of 2014, as lower oil prices impacted on drilling activity across most of the customer base. In Chromium, there was no significant currency translation impact on sales andoperating profit. Sales volumes in the first quarter were 7 per cent lower thanthe same period last year as demand for refractory grade chrome oxide, whichwas particularly strong in 2014, returned to more normal levels following thecompletion of a number of significant customer projects. Otherwise sales inleather tanning and timber treatment continued to show good growth. Fixed costsin the period benefited from plant optimisation activities and the positiveresolution of some legacy issues. While markets outside of North Americacontinue to be challenging, management expects a full year result that is inline with the business's stated strategy of "stable earnings and cash flow". The Group's balance sheet remains strong and is expected to be in a net cashposition at the end of the year which, under our current special dividendpolicy, will continue to provide shareholders with attractive returns. ENDS Enquiries: Elementis + 44 (0) 207 408 9300David Dutro, Chief ExecutiveBrian Taylorson, Finance Director FTI Consulting + 44 (0) 203 727 1000Deborah ScottMatthew Cole