Information  X 
Enter a valid email address

Elementis PLC (ELM)

  Print      Mail a friend       Annual reports

Thursday 16 April, 2009

Elementis PLC

AGM / Interim Management Statement

Elementis plc  ("the Company")  today issues  its Interim  Management
Statement for the  period ended  March 31,  2009 in  relation to  the
Company and its subsidiaries ("the Group").

Trading for  the first  three months  of the  year has  continued  to
experience significantly lower levels  of demand following the  sharp
downturn that occurred towards the end of 2008. In Specialty Products
sales volumes, excluding  Deuchem which  was acquired  in July  2008,
were 33 per cent lower than in the previous year with European  order
patterns particularly depressed.  Nevertheless, overall  contribution
margins and market share remain  stable. In Asia, Deuchem sales  have
shown an  improving trend  during the  period due  to demand  in  the
Chinese  domestic  market.  In  Chromium  the  strategic  review  and
consultation process  announced  in  February,  relating  to  the  UK
facility, is  progressing and  the Company  expects to  announce  the
outcome before the end of June 2009. Sales volumes in the first three
months of 2009 for Chromium's remaining US based business were 53 per
cent lower than the same period last year.

The Group  hedges its  currency exposures  by entering  into  forward
contracts, normally during  the third quarter  of the previous  year.
The sharp downturn in demand that occurred at the end of 2008 and the
continuing low sales volumes experienced in the first part of 2009 is
likely to result in the currency  hedges that were taken out for  the
current year exceeding  the actual  currency exposure  in the  Group,
particularly for the first half of the year. If the current level  of
Group sales were to continue,  the first half operating profit  would
be reduced by approximately £4.7 million due to this effect.

Market expectations assume some improvement in demand patterns during
the remainder of  2009 and,  while the  Group is  well positioned  to
benefit from  the eventual  economic  recovery, the  current  trading
environment continues to make it  difficult to predict the timing  of
any such recovery. In  the meantime, the Group  has taken actions  to
reduce costs in  order to  partially mitigate the  impact that  lower
than expected sales volumes will have on operating margins.

The Group remains  well financed, with  existing bank facilities  not
due for renewal until 2011.

                                                              - Ends


Elementis                          020 7408 9300
David Dutro, Group Chief Executive
Brian Taylorson, Finance Director

Financial Dynamics 020 7831 3113
Andrew Dowler
Greg Quine


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.