Last checked at 22 Apr 2010 07:00
Elementis plc
22 April 2010
AGM / Interim Management Statement
Elementis plc ("the Company") today issues its Interim Management Statement for the three months ended 31 March 2010 in relation to the Company and its subsidiaries ("the Group").
Trading for the first three months of the year has experienced significantly improved customer demand compared to the same period last year, with restocking appearing to have had a strong influence during the period. As a result, the rate of recovery in sales volumes may moderate during the course of the year as demand patterns normalise. We expect to have a clearer view of sustainable demand levels during the second quarter, which is traditionally the start of the seasonal upswing in the coatings market. Nevertheless Group earnings for the full year are expected to be ahead of current market expectations.
In Specialty Products, sales volumes in the first quarter rose 59 per cent versus the comparable period last year due to a recovery in most end markets, particularly in industrial coatings helped by government stimulus spending, and business in Asia has continued to perform strongly. Restocking, particularly by coatings sector distributors, has also been a positive influence in the quarter although less prominent in the order patterns of other coatings customers. Sales to the oilfield sector were also significantly better than last year due to strong demand for shale gas drilling products in North America and an active drilling season in the Canadian market, which is now coming to an end as the winter months recede. Sales volumes in personal care were almost double those in the previous year, helped by the acquisition of Fancor at the end of 2009, which has been successfully integrated during the first quarter.
In Chromium, sales volumes were 52 per cent higher than in the first three months of 2009 due to restocking and early signs of a recovery in most market sectors, with a number of sectors benefiting from delays in end user investment spending in 2009. Chrome oxide sales into refractory applications and chromic acid sales into heavy machinery being two examples of this.
As previously announced, the Company will change its reporting currency to US dollars, beginning with the 2010 Interim Results Statement, and a separate press release will be issued on Monday 26 April providing more details, which will include restated financials for 2009.
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Enquiries
| Elementis | 020 7408 9300 |
| David Dutro, Group Chief Executive |
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| Brian Taylorson, Finance Director |
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| Financial Dynamics | 020 7831 3113 |
| Andrew Dowler |
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| Greg Quine |
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