Elementis sees FY ahead of market forecasts

22nd Apr 2010 07:59

Speciality chemicals supplier Elementis said full year earnings are expected to be ahead of current market expectations as demand picked up in the first three months of the year. On a cautionary note, the group said restocking appears to have had a strong influence during at the start of the year and as a result, the rate of recovery in sales volumes may moderate during the course of the year. "We expect to have a clearer view of sustainable demand levels during the second quarter, which is traditionally the start of the seasonal upswing in the coatings market," the group said in a company statement. In Specialty Products, sales volumes in the first quarter rose 59% from the same time a year earlier due to a recovery in most end markets, particularly in industrial coatings helped by government stimulus spending, and business in Asia has continued to perform strongly. In Chromium, sales volumes rose 52% from the same three months of 2009 due to restocking and early signs of a recovery in most market sectors, the group added.