Elementis shares up 10 per cent on Q3 trading
FTSE-250 chemicals firm Elementis (LON:ELM) said today that trading during the third quarter was ahead of that for the same period in 2010 with all three of the group's businesses showing improved earnings. Shares in the firm were up by 9.7 per cent at 153.7 pence each before 9am today.
In the firm's Specialty Products division sales during Q3 2011 were 12 per cent ahead of the same period last year as the business continued to benefit from strong demand in a number of sectors, as well as from newly-introduced products and market share gains.
Q3 operating margins in the division were above 20 per cent, which is consistent with H1 2011 and ahead of the same period last year, said the firm.
In the Chromium division, sales increased by eight per cent compared to Q3 2010, with all production facilities continuing to run at high operating rates. Elementis said that global demand for the division's chemicals has continued to be robust, allowing the business to steadily increase the proportion of its sales going into the core North American market.
"Specialty Products has a greater geographic breadth, a more impressive new product pipeline and a stronger team than in prior years, and the new Chromium model is proving to be more resilient than in the past," said David Dutro, the firm's chief executive. "Consequently, we remain confident that full year earnings, before exceptional items, will be in line with our expectations."
Elementis added that its group cash flow continues to be strong and "it is likely that the balance sheet will show a net cash position at the end of the year".
FTSE-250 chemicals firm Elementis (LON:ELM) said today that trading during the third quarter was ahead of that for the same period in 2010 with all three of the group's businesses showing improved earnings. Shares in the firm were up by 9.7 per cent at 153.7 pence each before 9am today.
In the firm's Specialty Products division sales during Q3 2011 were 12 per cent ahead of the same period last year as the business continued to benefit from strong demand in a number of sectors, as well as from newly-introduced products and market share gains.
Q3 operating margins in the division were above 20 per cent, which is consistent with H1 2011 and ahead of the same period last year, said the firm.
In the Chromium division, sales increased by eight per cent compared to Q3 2010, with all production facilities continuing to run at high operating rates. Elementis said that global demand for the division's chemicals has continued to be robust, allowing the business to steadily increase the proportion of its sales going into the core North American market.
"Specialty Products has a greater geographic breadth, a more impressive new product pipeline and a stronger team than in prior years, and the new Chromium model is proving to be more resilient than in the past," said David Dutro, the firm's chief executive. "Consequently, we remain confident that full year earnings, before exceptional items, will be in line with our expectations."
Elementis added that its group cash flow continues to be strong and "it is likely that the balance sheet will show a net cash position at the end of the year".
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