22nd Apr 2015 06:56
LONDON (Alliance News) - Speciality chemicals company Elementis PLC expressed confidence for 2015, saying it had delivered "encouraging results" in the first quarter of the year.
In a statement ahead of its annual general meeting Wednesday, Elementis said that currency movements reduced its first quarter sales by 5% compared to the previous year, although operating profit was reduced by less than 1% as a result of its hedging programme.
At constant currency, sales in its speciality products division were up 3%. Within this, coatings additives sales were up 4% in North America at constant currency, up 9% in Latin America and 5% in Asia Pacific. Although economic activity was relatively subdued, sales were up 5% in Europe on the back of new product launches and market share gains.
Personal care sales were up 6% at constant currency on a strong performance in North America, Asia Pacific and Latin America, but constant currency sales in the oilfield space were down 13%, due to lower oil prices hitting drilling activity across most of its customer base.
In its Chromium business, which is less affected by currency changes, sales were down 7% in the first quarter as demand for refactory grade chromium oxide returned to more normal levels, as sales in leather tanning and timber treatment continued to show good growth.
"The group's balance sheet remains strong and is expected to be in a net cash position at the end of the year which, under our current special dividend policy, will continue to provide shareholders with attractive returns," the company said in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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