14th Jan 2021 10:22
(Alliance News) - Elementis PLC on Thursday said it expects to report a stronger fourth quarter performance compared to the third; however profit for 2020 as a whole is set to be down from the year before.
For the three months to the end of December, the FTSE 250 speciality chemicals firm noted a recovery in Talc volumes, driven by improved plastic demand for automotive applications and resilience in coatings.
In addition, demand had improved for the Chromium business, particularly for industrial applications such as leather tanning and metal plating. For Chromium and Talc, revenue for the fourth quarter is expected to be ahead of the same period the year before.
Although the Coatings business performed well in the fourth quarter, trading remains at lower levels then the prior year. Energy has continued to suffer weak market conditions with subdued rig counts and energy levels.
Also, Personal Care sales have remained weak as continued social and travel restrictions related to Covid-19 reduces consumption, Elementis said.
Looking ahead, as at December 31 net debt is estimated to have been USD415 million, down from USD454 million at the start of 2020.
For the year as a whole, adjusted operating profit is expected to be between USD81 million and USD83 million, a 33% to 34% drop from USD123 million in 2019.
"For 2021, whilst our new business and innovation pipelines are encouraging, we continue to face temporary demand challenges from Covid-19, particularly in Personal Care where we expect performance will recover when social and travel restrictions are lifted," the group stated.
Shares in Elementis were down 1.8% at 112.92 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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