30 June 2005
Thursday 30 June 2005: Elementis plc (LSE:ELM) today issues a trading update,
ahead of its first-half results, which will be announced on 28 July 2005.
Sales and operating profits have increased during the first half of 2005
compared to the same period of last year, due, in part to the acquisition of
Sasol Servo in the second half of 2004. The first half results were in line
with the company's expectations.
Elementis Pigments has today announced a rationalisation of its manufacturing
facilities. The majority of the facilities at the East St. Louis pigments plant
will cease operation during the second half of the year and Elementis will take
a one time charge of approximately £7 million in the first half to provide for
the costs of the rationalisation. Production will be transferred to other
manufacturing sites including the newly constructed facility in TaiCang, China.
The company expects that these moves will result in an improvement in margins
for its pigments business in 2006 when they will have been implemented fully.
The recently reconstituted board of Elementis is reviewing the company's
strategy and each of its operations. The company will provide an update of its
plans resulting from this process during the second half.
- Ends -
Elementis Tel +44 (0) 1784 227000
Geoff Gaywood - Chief Executive
Brian Taylorson - Finance Director
Hilary Reid Evans - Head of Corporate Communications
Financial Dynamics Tel +44 (0) 20 7831 3113
Deborah Scott/Greg Quine
This information is provided by RNS
The company news service from the London Stock Exchange