Elementis to deliver in-line results despite effects of bad weather

24th Apr 2014 13:23

FTSE 250-listed Elementis on Thursday confirmed that its full-year results would be in line with expectations, despite the impact of bad weather experienced in the first few months of 2014. The group said it had good sales momentum across its growth platform in the first quarter of 2014, while its oilfield additives had a slower, weather-affected, start to the year. The weather also impacted its North American based coatings, oilfield and chromium businesses as snow and unusually cold temperatures disrupted transportation and caused some customers to temporarily close plants. Elementis said that despite the negative effects, Speciality Products still posted solid growth with stable margins and, although sales volumes in Chromium, the division with the highest dependency on North America, were slightly below the previous year, its operating profit was comfortably ahead of the comparative period.Within Speciality Products, the group's sales volumes in the first quarter were 3% higher than the same period last year, with currency having no material impact on sales or operating profit and operating margins remaining stable.It also said its Coatings Additives products continued to experience strong growth in Asia Pacific and Latin America. Meanwhile, the oilfield additives business had a slower, weather affected, start to the year, but the company said it continued to believe that the underlying market drivers of this business remain positive, evidenced by good growth in March.The share price edged 0.1% higher to 294.60p by 13:30. NR