17 June 2003
ELEMENTIS plc TRADING UPDATE
Staines, UK, Tuesday 17 June 2003 - Elementis plc (LSE: ELM) will issue its
interim results for the six months ending 30 June 2003 on 29 July 2003. Prior
to its close period, Elementis today issues the following trading update.
Underlying sales in US dollars for the first half of 2003 are expected to be
approximately 10 per cent ahead of the equivalent period last year. Sales growth
has been achieved in all Elementis businesses, and has been particularly strong
in Chromium, due to the acquisition of OxyChem's chrome business in December
2002. Sales growth has also been particularly strong in Specialty Rubber.
Overall market demand has shown little improvement over the prior year.
Consistent with our April AGM statement, it is anticipated that the continuing
weakness of the US dollar against sterling will reduce sterling reported sales
to a level close to those reported for the same period in 2002.
Strategic programmes addressing opportunities for step change financial
performance in each of the businesses are progressing well and continue in line
with management's expectations. Cost reduction and operational improvement
programmes, including Six Sigma, continue to exceed expectations, offsetting
both higher energy prices experienced in the Pigments and Specialties businesses
and lower market pricing for Chromium products. As a result, Elementis expects
that sterling reported operating profit for the half year will be similar to
that reported for the same period in 2002.
As stated in our preliminary results announcement in February 2003, we expect to
continue to improve both our cost base and our market positions throughout the
remainder of 2003.
Sales in the second half are typically lower than the first half due to seasonal
effects. Elementis however currently expects that benefits from structural
changes will contribute more in the second half than the first, and that, if
current economic conditions prevail, full year operating profit will be in line
with market expectations.
Elementis will host a visit for sell-side analysts and investors to its
operations at Livingston and Eaglescliffe, UK, on Thursday 19 June 2003. No
material new information will be disclosed in the presentations which will form
part of this visit, nor will there be any further statement on current trading.
The site-visit presentations will be available from Thursday 19 June on the
Elementis website, www.elementis-eu.com.
- Ends -
Elementis plc Tel: +44 (0)1784 224212
Brian Taylorson Finance Director
Hilary Reid Evans Head of Corporate Communications
Brunswick Tel: +44 (0)20 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange