UK's Elementis full-year earnings to be ahead of expectations

01 November 2010 08:23  [Source: ICIS news]

SINGAPORE (ICIS)--UK-based Elementis said on Monday it expects its earnings for the full year to be ahead of market expectations after posting a 11% year-on-year increase in sales volumes of its specialty products in the third quarter.

Sales volumes of specialty products to the oilfield sector surged 84% year on year in the third quarter, largely due to the increase in shale gas drilling in North America, the company said in a statement.

Meanwhile, sales volumes in personal care rose 55% year on year, or 17% higher excluding its acquisition of cosmetics raw material supplier Fancor that was concluded in December last year, it said.

In Asia Pacific, sales volumes of coating additives rose 8% year on year as the region continued to experience strong growth in “higher value differentiated products”, Elementis said.

The company’s specialty products business has continued to extend its overall operating margin due to selective price increases and product mix optimisation, it said, adding that operating margins for the third quarter of 2010 were higher then for the first six months of the year.

Elementis’ chromium business, meanwhile, posted an improvement in its operating margins in the third quarter versus the first six months of the year, as overall customer demand boosted its capacity utilisation rates.

“As a result of the progress outlined above, earnings for the full year are expected to be ahead of market expectations,” the company said.

“Net debt has continued to decline since 30 June 2010; otherwise there has been no material change in the group's financial position, which remains strong,” it added.

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By: Nurluqman Suratman

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