LONDON - Elementis plc, a global specialty chemicals company, has reported a slight revenue increase of 2% year-on-year for the third quarter ended September 30, 2024. Adjusted for currency fluctuations, the rise stands at 3%. The company's adjusted operating margin remained steady at 17%, consistent with the first half of the year.
The increase in revenue was seen across both of its business segments. Personal Care sales experienced growth in the Cosmetics and AP actives areas, following typical seasonal patterns. Performance Specialties also saw a positive third quarter, with advantageous pricing and product mix compensating for a general decline in market volumes.
In the Coatings sector, Elementis achieved a marginal increase in sales compared to the previous year, with the Americas and EMEA regions contributing to revenue growth through price and mix improvements, despite lower sales volumes in Asia. Meanwhile, Talc sales remained relatively unchanged from the prior year, with the company's focus on high-value applications.
Elementis continues to implement its Innovation, Growth, and Efficiency strategy, having launched seven new products and pursued cost-saving initiatives. The company is on track to realize at least $15 million in annual cost savings for 2024. Its Fit for the Future restructuring program is progressing as planned, with the transition of transactional services to an outsourcing provider completed and the development of a new center in Porto.
Regarding the EU state aid case, Elementis awaits the return of approximately £15 million following the Court of Justice of the European Union's annulment of a previous decision that found certain UK tax exemptions to be in conflict with EU state aid rules.
The strategic review of the Talc business, announced on August 1, 2024, is ongoing, with further updates promised in the future. Following a recommendation by the European Chemicals Agency's Risk Assessment Committee to reclassify talc as a substance of very high concern, Elementis, in conjunction with EUROTALC, intends to challenge the proposed classification.
CEO Paul Waterman expressed satisfaction with the company's third-quarter performance, emphasizing the execution of the company's strategy and confidence in meeting full-year financial expectations. Elementis is set to continue focusing on self-help strategies to ensure financial targets are met independently of market conditions.
Elementis's financial outlook remains positive, with expectations to deliver a full-year financial performance in line with market projections and continued leverage reduction. The information presented is based on a press release statement from Elementis.
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