Elementis warns 2015 earnings at lower end of expectations

17th Dec 2015 07:37

(ShareCast News) - Specialty chemicals company Elementis has warned 2015 earnings will be at the lower end of market expectations.The company said that since its interim management statement in October, markets had continued to be "challenging"."Due to the cash generative nature of the group and our ongoing focus on cash management, it is still anticipated that the Group's year end net cash balance will be higher than the prior year balance of $64.2m," the company said.Looking towards 2016, management expects Specialty Products to make progress against the current year, based on its strong and diverse market positions, new product launches and resilient contribution margins.Export sales from Elementis' North American chromium unit "are likely to remain under pressure due to the strong US dollar", with operating profits in 2016 expected to be lower."Operating profit in the current year has benefited from approximately $5m of "one-time" items, relating to a legal settlement and property easements which will not be repeated in 2016" Elementis said.