Elementis PLC (LON:ELM) plunged on Tuesday after the speciality chemicals group warned progress this year would be slower than expected amid “challenging” market conditions.
The FTSE 250 company, which makes chemicals to enhance the texture of paints and cosmetics, said the drop-off in performance reflected “broader macroeconomic trends”, with its coatings business particularly hard-hit.
READ: Elementis to “rapidly deleverage” as net debt surges
Performance in the personal care division was mixed, with “strong growth” in cosmetics offset by a “weaker start” in antiperspirant active ingredients.
Energy had a steady opening to 2019, while chromium sales grew year-on-year as price rises more than offset lower demand levels.
As for Mondo, the talc business it bought for US$500mln last summer, its integration remains on track for completion in October following a “robust” first-quarter performance.
“Whilst trading conditions in the first quarter of 2019 have proved challenging, Elementis remains focused on delivery, improving returns and deleveraging,” said chief executive Paul Waterman.
“This will be underpinned by the integration of the Talc business, delivery of self-help efficiency measures and an unrelenting focus on cash generation.”
Shares dived 9.3% to 160.6p on Tuesday.