Elementis delivers 'resilient' third-quarter performance - UPDATE

25th Oct 2013 07:02

- Oilfield drilling returns to 'more normal' trading pattern- Expects to end the year cash-positive - On track to deliver full-year EPS in line with market expectationsSpeciality chemicals group Elementis said that despite of the slower-than-anticipated economic background, it delivered a 'resilient performance' for the three months ended September 30th and saw a return to more normal trading patterns in oilfield drilling.The company is on track to deliver full-year earnings per share in line with market expectations.Group Chief Executive, David Dutro, said: "The group's strategy of creating its own growth opportunities, combined with its strong, diverse market positions and a return to more normal trading patterns in oilfield drilling are the key drivers of the group's 12% sales growth in the current quarter, compared to the same period last year. "[Our] investments strengthen the broad geographic presence and enhance the group's exciting market positions and will support further growth over the medium term."Speciality Products sales improved by 15%, or 8% excluding acquisitions and currency, the firm reported, adding that its operating margin in the third quarter was similar to that reported for the first six months of the year as overall pricing and contribution margins remained stable.Within this, Coatings saw a 12% climb in North American sales, and an 11% rise in China. Latin American sales increased by 68%, while a more modest 3% improvement was seen in Europe. Personal Care sales jumped 13%, while Oil and Gas Drilling sales were at a similar level to the average quarterly sales in the first half of this year and 35% ahead of the same period last year.Commenting on Chromium trading patterns following the planned maintenance shutdown in the early part of the year, the group said it had seen a return to more normal levels.The company also revealed that it expects to end the year with a net cash balance of "at least $300m". NR