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Elementis

Elementis warns on profits as chromium sales slide

Currency weakness against the US dollar, particularly in Eastern Europe, has led to challenging market conditions for its chromium division

piece of chromium on top of its name in the periodic table
Elementis' chromium division provides chemicals to its customers that make their products more durable in applications such as aerospace alloys

Chemicals group Elementis PLC (LON:ELM) has warned challenging market conditions outside of North America has hit demand for chrome.

The firm blamed the strength of the US dollar, particularly in Eastern Europe, for the fall in sales.

“Sales and margins outside of North America for the year as a whole are expected to be materially lower than the previous year,” the firm said in a statement.

“Consequently, earnings per share for the year as a whole are expected to be below the range of market expectations.”

Chromium sales in the US and Canada are expected to be similar to last year.

Other parts of the business are faring much better, said Elementis.

Its largest division, Specialty Products, that makes additives that help liquids such as paint, cosmetics and oil flow better is on track.

Sales in personal care are growing while oilfield sales have remained relatively stable despite the slide in the crude price.

Net cash at the end of this year will be ahead of the previous year, Elementis said.

Shares were down 20.2p, or 9%, to 206.2p.

Quick facts: Elementis

Price: £1.38

Market: LSE
Market Cap: £799.78 m
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