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13/06-2019 07:45:08: (ELK) 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
Email: odd-geir.lyngstad@elkem.no



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

Ekstern link: https://newsweb.oslobors.no/message/479241

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