RNS Number : 3878M
24 May 2010
24 May 2010
Elementis plc (the "Company") today issues a trading update in relation to the Company and its subsidiaries (the "Group").
In the Interim Management Statement dated 22 April 2010 the Company announced that its strong performance in the first three months of the year had been supported by restocking and that underlying demand patterns were likely to become clearer during the second quarter of the year, particularly in the coatings market.
The Company can now report that, in Specialty Products, customer order patterns have continued to be robust since the time of the last announcement and a seasonal upswing in coatings sales has provided further evidence of improving underlying demand. Sales to the personal care and oilfield drilling sectors also continue to perform strongly. In Chromium, demand patterns are similarly demonstrating resilience.
As a result, management is of the view that any potential softening in demand that may occur later in the year, as the effects of restocking subside, is likely to be much less pronounced than was previously thought. Earnings for the first half are now expected to be significantly ahead of the Company's expectations. Although the Board expects that second half earnings will be lower than those achieved in the first half, it does anticipate that Group earnings for the full year will be well ahead of its expectations.
Management expectations for H1 2010
· Revenue (in US dollars) up 12% to 14% on H2 2009 (37% to 40% on H1 2009).
· Half year trading profit in the region of $43m to $45m, up 54% to 61% on H2 2009 ($28m).
Elementis plc Tel: +44 (0)20 7408 9300
This information is provided by RNS
The company news service from the London Stock Exchange