27th Apr 2016 06:58
LONDON (Alliance News) - Elementis PLC on Wednesday said it was working to manage its margins to keep its performance in line for 2016 following a mixed start to the year.
The company, which manufactures additives used in industrial, personal care and oilfield drilling markets, said sales for its coatings and personal care segments in its Specialty Products division were "satisfactory" in the first quarter to the end of March, but total sales were down 7.0% amid a slump in oilfield revenue.
Oilfield sales were down 37% year-on-year in the quarter, broadly in line with the run-rate seen in the second half of 2015. This offset 4.0% growth in personal care sales, though coatings additives sales were mixed, rising modestly in Europe but down in Latin America and Asia.
Chromium sales also slumped in the quarter, down 11% year-on-year as market conditions outside North America proved challenging. Sales in North America were down 5.0%, though Elementis expects this to be made up in the second quarter and for sales to be flat for the half. Sales outside North America, however, dropped 19%.
"Although some markets continue to be challenging and we are cycling against a stronger first quarter in 2015, we are proactively managing our margins and cost base to ensure that our performance for the year remains in line with management expectations," said Chief Executive Paul Waterman.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Elementis