Elementis (ELM) shares plunged after a profit warning outlined a poor final quarter for the chemicals specialist. Elementis, which makes a range of chemical and personal care products, reported competitive pressures on its anti-perspirant products, which sit within its personal care division.
Anaemic demand and weak pricing pushed the performance of the group’s chromium division beneath expectations, while its energy business also failed to meet forecasts owing to a further slowdown in North American drilling activity. “The more cyclically exposed parts of the portfolio, like chromium and energy, have deteriorated through [the second half],” said chief executive Paul Waterman.
Elementis now expects its full-year adjusted operating profits to sit in the range of $122m-$124m (£94m-£95m), beneath previous forecasts of around $131m and last year’s level of $132m. Meanwhile, its net debt for the year is expected to be around $465m, representing an approximate multiple of 2.8 times times cash profits. Elementis had previously forecast a multiple of 2.4.
