Elementis plc (LON:ELM) has cut its profit expectations for 2019 due to lower chromium prices and a sharp slowdown in US oil rig activity.
In a trading update, the FTSE 250-listed firm said adjusted operating profit for the year just ended is now anticipated to be US$122mln-124mln, compared with US$133mln a year ago.
Chromium outside of the US has been particularly weak, while rig usage has dropped by 25%, the speciality chemicals group said.
Paul Waterman, chief executive commented: "Our overall performance in 2019 has been negatively impacted by a challenging market backdrop as the more cyclically exposed parts of the portfolio like Chromium and Energy have deteriorated through H2.”