Local currency weakness forces petrochemicals company Elementis to pull supply in Latin America

Local currency weakness forces petrochemicals company Elementis to pull supply in Latin America

UK-based specialty chemical manufacturer Elementis has released a trading statement ahead of its interim results for the half year ending June 30 2015, which will be announced on July 28, 2015, indicating that sales in its personal care division has suffered at the hands of significant currency weakness in Latin America.

“In personal care, the business continues to expand through new product sales and investments into new geographies. However, sales in Latin America have been impacted by significant local currency weakness. This has resulted in the business opting to cease supplying to a number of applications where returns have fallen below an acceptable threshold. The business is taking decisive action to address this competitive dynamic and market share gains from new product introductions have helped to offset the Latin American shortfall,” said David Dutro, Elementis’ Chief Executive, in a statement. 

“Therefore, sales for the first half will be similar to the strong 2014 first half results. Additionally, positive trends in other markets and geographies mean that full year sales, on a constant currency basis, are expected to be ahead of the previous year,” he continued. 

 

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