ELM Elementis Plc

Elementis - Interim Management Statement

Elementis plc (ELM.L, "Elementis" or the "Group"), the Global Specialty
Chemicals Company, today issues its Interim Management Statement for the three
months ended 30 September 2014.

Commenting on the Group's performance Group Chief Executive, David Dutro, said:

"Elementis is pleased to report another resilient performance that further
demonstrates our ability to deliver profitable growth in an economic
environment that continues to be challenging. Our recent investments in new
products and geographies combined with our strong market positions and customer
relationships mean that we have a broad base of growth opportunities. Together
with our ability to generate significant positive cash flow this provides an
attractive platform from which to deliver sustainable value to our
shareholders."

Specialty Products' sales improved by 6 per cent in both dollars and volumes
compared to the same period last year.

  * In coatings, sales improved by 6 per cent as the business continued to
    benefit from its broad geographic base and recent investments in growth.
    North America sales improved by 5 per cent, helped by growing sales from
    the new decorative additives plant in New Martinsville and defoamer sales
    from the Hi-Mar acquisition. In Europe, sales were 11 per cent higher, or 8
    per cent excluding currency, as the business team there supplemented the
    subdued underlying growth in Western Europe with sales of new products, as
    well as additional sales into Eastern Europe and the Middle East. Asia
    Pacific sales increased by 4 per cent and Latin America sales were similar
    to the previous quarter as good progress in delivering synergy benefits
    from the Watercryl acquisition was offset by soft underlying demand due to
    weak economic activity.

  * In personal care, sales for the quarter improved by 6 per cent, bringing
    the sales growth for the first nine months of the year to 16 per cent, as
    new products and sales into emerging markets continued to drive
    performance.

  * Sales to oil and gas drilling improved by 6 per cent as the business
    returned to more normal operating rates following the slower start to the
    year.

  * Operating margin in the quarter was slightly below the same period last
    year due to the impact of the start-up phase of the recently completed New
    Martinsville plant, where production activity is building in line with
    management expectations. Overall pricing and contribution margins across
    the businesses remained relatively stable.

Chromium continued to perform in line with its strategy of delivering stable
earnings and cash flow, with sales in the third quarter 2 per cent higher and
operating profit at a similar level to the previous period. The business has
continued to experience solid demand in its key North American market and
recent improvements in leather tanning activity, which has been relatively soft
over the last two years, helped increase the percentage of sales to the region
to 68 per cent, compared to 63 per cent in the first six months of the year.
Operational efficiencies continue to contribute to the overall stability and
performance of Chromium. The next planned maintenance shutdown is scheduled to
take place during the first half of 2015.

Strong cash flow continues to be a positive aspect of the Group's performance
and it is anticipated that the end of year balance sheet will show a net cash
balance of at least $40 million.

Overall we remain confident in the Group's ability to deliver growth in excess
of the underlying economies in which we operate and expect our full year
earnings per share to be in line with market expectations.

                                      END

Enquiries

Elementis plc                              Tel: +44 (0) 20 7408 9300
Brian Taylorson, Finance Director

FTI Consulting                             Tel: +44 (0) 20 3727 1000
Deborah Scott
Matthew Cole