25th Oct 2013 09:40
LONDON (Alliance News) - Specialty chemical company Elementis PLC Friday posted a 12% sales growth for the three months ended September 30, driven by strong growth in its coatings segment and personal-care division, and said it expects full-year earnings per share to be in line with market expectations.
Elementis said that its trading performance has been resilient despite slower growth than generally anticipated.
For the three-month period, specialty products sales increased 15%, or 8% excluding acquisitions and currency.
Elementis reported continued strong growth in its coating segment, as sales in Latin America surged 68%, boosted by the acquisition of Brazil's Watercryl in September 2012 and the growth of Watercryl's sales outside of Brazil. In Asia Pacific, sales were up 11%, and they were up 12% in North America, helped by the acquisition of Hi-Mar earlier in the year.
The group's personal-care division also reported strong figures, with sales up 16% in the third quarter, reflecting a strong first half of the year, which increased 23%.
Elementis said that as production volumes and plant utilisation returned to more normal levels, margins improved compared to the first half of the year, and it expects a full-year operating margin to be in the range of 24% and 26%.
The group said it expects a full-year net cash balance of at least USD30 million.
Elementis shares were up 5.0% Friday morning, trading at 256.60 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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