22nd Jun 2016 06:16
LONDON (Alliance News) - Specialty chemicals company Elementis PLC on Wednesday said its earnings for 2016 are set to meet market expectations amid difficult conditions for its chromium division.
The FTSE 250-listed company, which manufactures additives used in industrial, personal care and oilfield drilling markets, said that while sales and margins in its North American chromium business are set to be broadly in line year-on-year, market conditions outside the North American market are proving challenging.
Eastern Europe has taken a particular hit, mainly as a result of local currency weakness against the dollar, and this will result in chromium sales and margins for 2016 being materially weaker year-on-year. That, in turn, will mean earnings for the group in 2016 will miss market expectations.
Specialty Products division sales have continued to make progress, Elementis said, with a solid performance for sales of decorative products in the US and a resumption of growth in Asia Pacific. Personal care sales have been strong, helped by new product launches and geographic expansion.
Oilfield sales, meanwhile, have remained relatively stable following the sharp downturn seen in 2015.
By Sam Unsted; [email protected]; @SamUAtAlliance
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