Elementis puts a gloss on things

Elementis, the speciality chemical additives firm, said all three of its divisions traded ahead of last year's levels in the third quarter.The company remains confident that full year earnings, excluding exceptional items, will be in line with the board's expectations.The Speciality Products division saw sales rise 12% year-on-year (yoy) in the third quarter, as new products went down well and the company grew market share.Sales to the oilfield drilling sector have continued to grow rapidly and will be supported henceforth by the expansion of the Charleston facility.Third quarter operating margins for the division were above 20%, consistent with the first half of the year and ahead of the same period last year.In the Chromium division, sales were up 8% yoy. Operating margins continued to improve in the third quarter, partly as a result of the change in the product mix but also as a result of the change to using natural gas at the group's Castle Hayne facility.In the Personal Care business, sales in the core European market grew by 5% yoy, once currency effects had been stripped out, and the business continues to make inroads in North America and Asia Pacific.Group cash flow continued to be strong and it is likely that the balance sheet will show a net cash position at the end of the year.The shares rose 8.3p to 148.4p in early trading following the trading update. --jh Elementis