31st Oct 2014 08:24
LONDON (Alliance News) - Elementis PLC on Friday said it expects to meet market expectations for its full year earnings as it said it performed resiliently in the third quarter.
The FTSE 250 specialty chemicals company said it remains confident it will perform well in its core markets over the year and expects full-year earnings per share to be in line with market expectations.
The group said Specialty Products sales were up 6% in the third quarter to the end of September, with sales in its coatings, personal care and oil and gas drilling divisions all rising by that percentage.
Its operating margin in the unit was slightly lower year-on-year owing to the impact of the start-up phase at the recently completed New Martinsville plant, where production activity is building up in line with expectations, it added.
Its Chromium arm also is performing in line with expectations, with third quarter sales rising 2% and operating profit at a similar level to the year before.
The group also said its cash flow remains positive and said it expects to have a net cash balance of at least GBP40 million at the end of the year.
Elementis shares jumped in early trade, rising 4.5% to 268.60 pence to be the best performer in the FTSE 250 in early trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
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