28th Apr 2005 11:00
Elementis PLC28 April 2005 28 April 2005 ELEMENTIS plc Chairman's Statement at Today's Annual General Meeting including Board Changes At today's Annual General Meeting, Keith Hopkins, Chairman of Elementis plc(LSE: ELM) said: Trading Statement "Elementis has continued to make progress in line with expectations during thefirst three months of 2005. The increases in Chromium chemicals prices implemented in January were sustainedthroughout the first quarter, and sales rose by 15 per cent in US Dollarscompared to the same period last year, on essentially flat volume. Further priceincreases of up to 20 per cent have gone into effect in April, and additionalincreases are planned for July. Variable costs have risen as anticipated andglobal capacity rationalisation has continued. In Specialties and Pigments sales were flat in US Dollars, with improved pricingcompensating for a relatively slow start to the US coatings season. Aspreviously announced, annualised synergy benefits of £3.5 million from the Servoacquisition will start to come through in the second half of 2005. Start-up ofour new Pigments plant in TaiCang, China has proceeded as expected andcommercial sales have commenced. Sales of Specialty Rubber products rose 7 per cent in US Dollars, reflectinggood demand in all major market sectors and regions. As part of management's continued focus on cost control and as a result ofsignificant progress in resolving legacy issues and simplifying administrationprocesses, Elementis expects to reduce overhead costs by approximately £2million annually during the second half of 2005, with the full benefit to befelt in 2006. The one off costs associated with this action are expected to beapproximately £1 million and will be incurred in the current year. While input cost inflation remains, particularly for energy and ocean freight,our leadership in chromium chemicals, improvements at Servo and the costbenefits of the TaiCang Pigments plant are all expected to drive improvedoperating performance as the year progresses." Board Changes "Michael Hartnall, who was appointed a director of the Company in 1993, has, inline with best practice, decided to step down from the Board as seniorindependent non executive director and Chairman of the Audit Committee followingthe conclusion of the Annual General meeting of the Company today. Chris Girling, who is finance director of Carillion plc, is to be appointed as anon executive director and Chairman of the Audit Committee with effect fromtomorrow, 29 April 2005. Edward Wilson, who has been a non executive director of the Company since 1999and is Chairman of the Remuneration Committee is to replace Michael Hartnall asthe senior independent non executive director with effect from today. Philip Brown, who has been the Secretary of the Company since 1992 and wasappointed to the Board in 2000, is to retire from the Company with effect from30 June 2005. I would like to thank Michael and Philip for the contributions they have madeduring a long period of service which has seen the Company transformed fromHarrisons & Crosfield, a diversified conglomerate, to the speciality chemicalcompany which Elementis is today. I am particularly pleased that Philip hasagreed to stay on as the Chairman of the Trustees of the Elementis Group PensionScheme. I am delighted to welcome Chris Girling to the Board. I have no doubt that theCompany will benefit from the strong financial management experience which Chriswill bring to the Board." -Ends- Enquiries Elementis +44 (0)1784 227000 Geoff Gaywood Chief ExecutiveBrian Taylorson Finance DirectorHilary Reid Evans Head of Investor Relations and Corporate Communications Brunswick +44 (0)20 7404 5959 Kate HolgateWendel VerbeekLaure Kornian-Chabert This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Elementis