Elementis PLC (LON:ELM) was a top FTSE 250 faller this morning after the specialty chemicals company reported a drop in annual profits negatively impacted by currency movements.
In early trading, Elementis shares were down 4.3%, or 12.9p at 286.7p.
The group saw its pre-tax profit drop to US$89.7mln for the year to December 31, down from US$115.2mln in 2015, although its revenues rose to US$659.5mln, up from US$677.2mln the year before.
Operating cashflow in the year was also lower at US$96.0mln, down from US$102.5mln, but Elementis ended 2016 with net cash of US$77.5mln, up from US$74.0mln a year earlier.
The firm plans to pay another special dividend for 2016 of 8.35 US cents, higher than the 8.0 US cents special payout made in 2015, while keeping its full year dividend flat.
In total, Elementis will pay shareholders 16.80 US cents for 2016, up from 16.45 US cents the year before.
Growth positioning …
Elementis 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.”
He added: “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.”
The company said the economic environment in 2017 is likely to "continue to be uncertain as we go through the current year", but said it is focused on self-help measures to deliver underlying operational improvements.