Elementis Talc Business Hit by Lower Volumes

Elementis plc of England has reported a first half 2020 loss of US$51 million on revenue of US$387 million, down from a profit of US$40 million on revenue of US$450 million in the first half of 2019. The company’s talc business generated an operating profit of US$6.2 million on revenue of US$60.9 million versus US$10.4 million on revenue of US$74.5 million in the first half of 2019.

Elementis notes, that while talc pricing remained stable, revenue fell by 16% with lower volumes primarily in the second quarter. Revenue from industrial talc customers declined 10% on a constant currency basis, with weakness in plastics and technical ceramics due to COVID-19 related automotive plant shutdowns. Sales to coatings customers were broadly stable with the prior year while sales to paper customers fell at an accelerated rate due to weak graphic paper demand and temporary plant shutdowns.

Volume 34, Issue 15

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