Business
Trading update
Trading update.
About this update from Elementis Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6200L\n Elementis PLC\n 14 January 2021\n \n \n \n \n Elementis plc \n \n \n Trading Update\n \n \n Sequential revenue improvement, FY 20 adjusted operating profit $81-83m\n \n \n Significant reduction in net debt, anticipated to be under $415m \n \n \n Elementis plc (\"Elementis\" or the \"Group\"), a global specialty chemicals company, today issues a trading update for the three months ended 31 December 2020.\n \n \n Fourth quarter business performance \n \n \n \n \n \n Fourth quarter revenue is expected to be ahead of the third quarter driven by improved volumes and largely stable pricing. Overall performance in the quarter is anticipated to be in line with management expectations, helped by tight cost management and supply chain efficiencies. As a result, adjusted operating profit for 2020 is expected to be $81-83m.\n \n \n · \n \n Coatings \n \n has continued to perform well in Q4, albeit at lower levels than the prior year period, and remains on track to deliver improved operating margins versus the prior year.\n \n \n \n \n \n · \n \n Personal Care\n \n s\n ales remain materially lower than the prior year period in both Cosmetics and AP Actives, due to the continuation of COVID-19 related social and travel restrictions that have reduced consumption. \n Q4 performance is anticipated to be in line with Q3 levels.\n \n \n \n \n \n \n \n · \n \n \n Talc \n \n volumes continued to recover, driven by improved long-life plastic demand for automotive applications and resilience in coatings. As a result, Q4 revenue is expected to be ahead of the prior year period. \n \n \n \n · \n \n \n Chromium \n \n demand has sequentially improved, driven by increased demand for industrial applications such as leather tanning and metal plating. As a result, Q4 revenue is anticipated to be broadly in line with the prior year period. \n \n \n \n \n \n \n · \n \n \n Energy \n \n continues to experience very weak market conditions with rig counts and activity levels remaining subdued. \n \n \n \n \n \n In the fourth quarter we have continued to deliver against our Innovation, Growth and Efficiency strategy. For full year 2020 we launched 12 new products, captured over $30m of new business and delivered $15m of in year cost savings. \n \n \n For 2021, whilst ou...