Elementis reports resilient first half, dividend up 5%

A "resilient" first half performance and a 5% increase in the interim dividend helped lift shares in Elementis on Tuesday.The speciality global chemicals company, which posted a 3% rise in sales and a 7% increase in profit, said that it had been able to achieve growth despite weather issues in the first quarter and varied global growth rates, largely thanks to its geographic footprint and broad end markets. Driven by the performance of its Specialty Products business, sales rose from $388.2m to $400.0m year-on-year, helping to drive profit before tax from $67.5m to $72.4m. Basic earnings per share climbed 11% from 11.5 cents to 12.8 cents. The dividend payment was increased from 2.57 cents to 2.70 cents. Specialty Products reported a 4% increase in sales, and within the division North America coatings saw a 5% increase, Asia Pacific coatings rose 6% and Personal Care jumped 21%. However, sales dropped 15% in the Oilfield business, mainly due to weather and some drilling softness. The group said it remained bullish on the segment. Chromium sales were unchanged from the previous year, although the operating profit margin was in line with its expectations thanks to strong sales in higher margin applications. Revenue from Surfactants rose from $33.8m to $34.2m, up 1%, although fell 3% after currency movements. Looking ahead, Chairman Andrew Duff said: "Elementis is well positioned to benefit from a number of significant global trends and has a clear strategy to create value for its shareholders. "In addition, the resilience and sustainability of the group is solidly underpinned by its strong market positions, geographic spread, technology leadership and sound operating practices. Hence the board is confident that the group will continue to make progress." Shares had risen 1.59% to 261.50p by 09:30.NR Elementis