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Elementis eyes better talc performance in second half

While the talc business is expected to improve in the second half, chromium will remain “broadly in line” with the first half and energy will decline “significantly”

Elementis plc - Elementis anticipates improved second half performance
Talc additives are used in a range of products from plastics to cosmetics

Elementis plc (LON:ELM) shares dipped on Thursday even though the speciality chemicals group said it expects the second-half to bring improved results, following “self-help” measures focused on cutting costs.

The FTSE 250-listed company, which earlier in the year warned of “challenging” macro conditions, said new product launches are supporting the coatings and personal care divisions, although tariffs hit the latter.

READ: Elementis warns on 2019 performance amid “challenging” macroeconomic conditions

The talc business, acquired for US$500mln last summer, is expected to improve over the second half, while the chromium arm is seen remaining “broadly in line” with the first six months and energy, the smallest part of the group, will “significantly” decline.

“Although there are no signs of improvement in global economic conditions, the fundamentals of our business remain strong,” said chief executive Paul Waterman in the trading statement.

“We are confident about our significant medium-term innovation, growth and efficiency opportunities.”

Shares were down 3% to 144.5p on Thursday morning.

Quick facts: Elementis plc

Price: 132 GBX

LSE:ELM
Market: LSE
Market Cap: £766.28 m
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