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Annual Results

Elementis sales and profits fall

01 March 2017 07:29

Elementis's group sales fell to $659.5m in the year to the end of December compared to $677.2 million in the previous year and IFRS profit before tax was $75.5 million compared to $120.8 million.

This was mainly due to the negative impact of currency on its Chromium segment and oil prices on the Energy sector within its Specialty Products business.

Operating profits fell to $94.2m from $121.5m.

The proposed final dividend of 5.75c and a special dividend of 8.35c take the total for the year to 16.8c - up from 16.45c last time.

Chief executive Paul Waterman said: "While 2016 performance was negatively impacted by currency and oil prices, significant progress was made to position Elementis for future growth.

"Elementis delivered good growth in the Personal Care and Coatings Asia sectors, and another year of strong cash generation.

"These and other good performances in our Specialty Products segment were offset financially by the continued impact of the strong US dollar and low oil price on our Chromium segment and Energy sector, respectively.

"Elementis has many strengths - high value propositions in Coatings, Energy and Personal Care, a material and growing position in China and an advantaged, cash-generative Chromium business in North America.

"We are making progress with our 'Reignite Growth' strategy, outlined in November 2016, that focuses on pursuing the best growth opportunities, supply chain transformation, innovation and a culture of high performance.

"In line with our Reignite Growth strategy, we were very pleased recently to have announced the acquisition of SummitReheis, a leading supplier of specialty personal care additives and materials for the anti-perspirant, pharmaceutical and dental markets.

"This complementary acquisition will help transform the scale and growth prospects of our Personal Care activities, which will make an increasing contribution to driving the future growth of Elementis overall.

"As we look to the future, we see significant opportunities for Elementis. The economic environment is likely to continue to be uncertain. However, the management team is focused on 'self help' to improve performance, whatever the market environment.

"The Group has a solid financial platform, a new, energised leadership team and a clear strategy for delivery. We are confident that we have the foundations on which to make progress in 2017 and beyond."

Story provided by StockMarketWire.com

Related Company: ELM

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