Elkem - Earnings Release 2019 | FinancialReports.eu

Elkem ASA - Weaker than expected development in 2Q-2019

Oslo, 13 June 2019

Elkem's guiding for the second quarter 2019 was an improvement in financial

performance compared to first quarter, mainly due to cost improvements and

better market conditions for silicones.

Elkem's accelerated improvement programme proceeds according to plan and is

expected to reach the target of NOK 500 million in 2019. However, the silicones

market has developed significantly weaker than expected, following the new

tariffs on US imports from China. Additional tariffs were introduced early May

and has negatively impacted the silicones end markets, particularly in China,

and resulted in lower prices and weaker demand. In addition, the Roussillon

upstream silicones plant in France has had a delayed restart after the

maintenance stop in May. The weaker market conditions in China and the

production problems in France, will give a weaker than expected result for the

Silicones division. Also, the market sentiment continues to be weak for silicon

metal and ferrosilicon.

In the first quarter Elkem reported EBITDA of NOK 852 million. The result for

the second quarter is estimated to be approximately 25% weaker than the first

quarter.

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

For further information, please contact:

Odd-Geir Lyngstad, VP Finance & Investor Relations

Tel: +47 976 72 806

About Elkem ASA

Founded in 1904, Elkem is one of the world's leading suppliers of silicon-based

advanced materials with operations throughout the value chain from quartz to

specialty silicones, as well as attractive market positions in specialty

ferrosilicon alloys and carbon materials. Elkem is a publicly listed company on

the Oslo Stock Exchange, and is headquartered in Oslo. The company has 6200

employees with 27 production sites and sales offices in a total of 28 countries

worldwide. In 2018 Elkem had revenues of 25.9 billion NOK. To learn more, please

visit www.elkem.com

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