Elementis in line in third quarter as it prepares sale of surfactants unit
Speciality chemicals company Elementis performed in line with expectations in the third quarter, it said on Friday, reportedly seeing a continuation of the trends it experienced in the first half of the year.
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The FTSE 250 firm said its coatings division saw a “good” sales performance across all regions compared to last year, however higher raw material costs were impacting profit growth.
Personal care continued to benefit from increased penetration of its hectorite-based products across categories and geographies, the board said.
The integration of SummitReheis remained on track with synergies “well underpinned”, and Elementis continued to implement pricing responses to recover raw material cost inflation.
It said it was creating a personal care “business of scale”.
The energy division remained strong, which the board said reflected higher activity levels and market share gains, with momentum in the business said to remain “extremely positive”.
Chromium was on track to deliver a full-year improvement, continuing to perform well and in line with the trends experienced across the first half of the year.
Despite unplanned production outages at its Castle Hayne and Corpus Christi facilities during the third quarter, Elementis said chromium continued to expect an improved full year outcome compared to 2016.
Finally, the board said the disposal of its surfactants business was progressing “well”, confirming that the favourable first half conditions in surfactants had not continued, as it had previously indicated.
The sale process for the business was progressing, and the board said it continued to expect resolution in early 2018.
“Elementis has delivered another good revenue performance in the third quarter and overall trading is on track,” said CEO Paul Waterman.
“Trends remain similar to those reported in the first half of the year and we remain on course to grow operating profit across all three segments in 2017.
“Going forward, we continue to see significant potential for Elementis as we implement our ‘Reignite Growth’ strategy.”