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.
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.