Elementis Regulatory News (ELM)

Elementis - Interim Management Statement Elementis plc (ELM.L, "Elementis" or the "Group"), the Global SpecialtyChemicals Company, today issues its Interim Management Statement for the threemonths ended 30 September 2014. Commenting on the Group's performance Group Chief Executive, David Dutro, said: "Elementis is pleased to report another resilient performance that furtherdemonstrates our ability to deliver profitable growth in an economicenvironment that continues to be challenging. Our recent investments in newproducts and geographies combined with our strong market positions and customerrelationships mean that we have a broad base of growth opportunities. Togetherwith our ability to generate significant positive cash flow this provides anattractive platform from which to deliver sustainable value to ourshareholders." Specialty Products' sales improved by 6 per cent in both dollars and volumescompared to the same period last year. * In coatings, sales improved by 6 per cent as the business continued to benefit from its broad geographic base and recent investments in growth. North America sales improved by 5 per cent, helped by growing sales from the new decorative additives plant in New Martinsville and defoamer sales from the Hi-Mar acquisition. In Europe, sales were 11 per cent higher, or 8 per cent excluding currency, as the business team there supplemented the subdued underlying growth in Western Europe with sales of new products, as well as additional sales into Eastern Europe and the Middle East. Asia Pacific sales increased by 4 per cent and Latin America sales were similar to the previous quarter as good progress in delivering synergy benefits from the Watercryl acquisition was offset by soft underlying demand due to weak economic activity. * In personal care, sales for the quarter improved by 6 per cent, bringing the sales growth for the first nine months of the year to 16 per cent, as new products and sales into emerging markets continued to drive performance. * Sales to oil and gas drilling improved by 6 per cent as the business returned to more normal operating rates following the slower start to the year. * Operating margin in the quarter was slightly below the same period last year due to the impact of the start-up phase of the recently completed New Martinsville plant, where production activity is building in line with management expectations. Overall pricing and contribution margins across the businesses remained relatively stable. Chromium continued to perform in line with its strategy of delivering stableearnings and cash flow, with sales in the third quarter 2 per cent higher andoperating profit at a similar level to the previous period. The business hascontinued to experience solid demand in its key North American market andrecent improvements in leather tanning activity, which has been relatively softover the last two years, helped increase the percentage of sales to the regionto 68 per cent, compared to 63 per cent in the first six months of the year.Operational efficiencies continue to contribute to the overall stability andperformance of Chromium. The next planned maintenance shutdown is scheduled totake place during the first half of 2015. Strong cash flow continues to be a positive aspect of the Group's performanceand it is anticipated that the end of year balance sheet will show a net cashbalance of at least $40 million. Overall we remain confident in the Group's ability to deliver growth in excessof the underlying economies in which we operate and expect our full yearearnings per share to be in line with market expectations. END Enquiries Elementis plc Tel: +44 (0) 20 7408 9300Brian Taylorson, Finance Director FTI Consulting Tel: +44 (0) 20 3727 1000Deborah ScottMatthew Cole