(Sharecast News) - Speciality chemicals company Elementis said in its third-quarter update on Tuesday that, despite challenging market conditions, it maintained revenue at a level similar to that of the prior two quarters.
However, when compared to the same period last year, revenue showed a 5% decline, or 7% at constant currency, across both of its business segments.
The FTSE 250 firm said it was committed to implementing self-help measures, including exploring new business opportunities, effective price management, and cost discipline, to address those challenges.
In the personal care segment, sales remained stable compared to the prior quarter but fell short of the robust performance seen in the same period a year earlier.
Notably, the company experienced continued strong growth in the Asian market.
Performance specialities also exhibited resilience in the face of market-related volume weaknesses within the coatings and talc divisions.
Coatings sales remained stable in the quarter, albeit below the prior year's figures, while Asia showed a modest improvement compared to the preceding two quarters.
Talc, on the other hand, continued to benefit from self-help actions, resulting in higher profits compared to the weak performance in the same period last year.
Elementis said it was maintaining its focus on financial turnaround and pursuing new business opportunities in the segment.
Looking ahead, Elementis said it was confident in its ability to achieve full-year financial performance in line with expectations despite the challenges posed by underlying macroeconomic conditions.
The company said it was on track to reduce leverage, supported by ongoing inventory improvements observed during the third quarter.
"Elementis delivered a resilient third quarter performance, as we continued to focus on product innovation and customer relationships, while maintaining strong cost discipline," said chief executive officer Paul Waterman.
"Despite the industry and macroeconomic conditions remaining uncertain, we remain well positioned to take advantage of growth opportunities across our market segments."
Waterman said that following the sale of Chromium earlier in the year, Elementis was now a focused speciality chemicals business.
"We look forward to providing details about our go-forward strategy at the upcoming capital markets day."
Reporting by Josh White for Sharecast.com.
Elementis (ELM)