29th Jul 2014 08:49
LONDON (Alliance News) - Elementis PLC Tuesday said its pretax profit increased in its first half due to sales improvements in its Specialty Products division.
The FTSE 250 listed chemicals company said its pretax profit increased 7.2% to USD72.4 million for the six months ended June 30 from USD67.5 million in the previous year, as revenue increased 3.0% to USD400.0 million from USD388.2 million
The company said revenues were supported by a 4% increase in Specialty Products' sales, with personal care products sales volumes increasing 21% and growth in both North American and Asia Pacific coatings operations.
As such, the company increased its interim dividend by 5% to 2.70 cents from 2.57 cents previously.
Elementis said in April that it had started 2014 with good sales momentum across its broad-based growth platform, and it anticipated full-year earnings to be in line with market expectations.
However, Elementis did note that its Oilfield division's sales were 15% down on the prior year, and its Chromium chemicals operations' sales volumes were flat due partly to weather-related issues.
The news comes after the company noted in February that short-term weather issues hurt its North American based coatings, oilfield and chromium businesses in January and February, as snow and unusually cold temperatures disrupted transportation and caused some customers to temporarily close plants.
"The group's strategy of creating its own growth opportunities combined with its strong and diverse market positions has helped to offset the first quarter weather issues that impacted our Coatings, Oilfield and Chromium chemical businesses in North America," Chief Executive David Dutro said in a statement.
Elementis shares were up 1.6% to 261.40 pence Tuesday morning.
By Tom McIvor; [email protected]; @TomMcIvor1
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