28th Oct 2020 10:14
(Alliance News) - Elementis PLC on Wednesday said overall performance in the third quarter was in line with the company's expectations despite Covid-19 continuing to impact negatively the group's volumes.
The speciality chemicals and personal care business said its Coatings division performed well in the third quarter, with revenue in line with the prior year and on track to beat it.
Personal Care sales were lower than both the prior year period and the second quarter, particularly in higher margin cosmetics, due to the continuation of social and travel restrictions as a result of Covid-19, Elementis said.
Talc volumes recovered from a slump in the second quarter, but were below prior year - although this is expected, Elementis said.
Chromium performance was in line with second quarter levels, but materially down on the prior year period, reflective of lower demand at key customers and sustained industry pricing pressure, particularly in the rest of the world. Current fourth quarter trading shows improvement however.
Energy continues to experience very weak market conditions, Elementis said, with rig counts and activity levels remaining at subdued second quarter levels.
Chief Executive Paul Waterman said: "Overall performance has been resilient and in line with our expectations. Nevertheless, the macroeconomic outlook remains uncertain and our focus remains on managing our operations well and executing our growth, innovation and efficiency agenda."
Elementis continues to operate with ample liquidity, the company said, with over USD300 million available through committed lending facilities.
Elementis shares were down 3.1% at 76.00 pence each in London on Wednesday morning.
By Greg Roxburgh; [email protected]
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