Elementis to hit top end

21st Apr 2011 09:23

Elementis hit a 52-week high after the speciality chemicals company said trading in the first quarter of this year has put 2010's first quarter figures in the shade.The group has seen strong demand in its key end markets and all of its businesses have improved margins. The order book remains strong with the orders continuing to roll in at a rapid rate in April, and, as a result, the board expects earnings for the full year will be at the upper end of market expectations.Sales of Speciality Products were up 9% year on year in the first quarter, while operating margins in the division are significantly higher than in the second half of 2010.The Chromium business continues to fire on all cylinders, sustaining sales volumes at the levels seen during the same period last year. The company has succeeded in passing on raw material prices to customers and consequently operating margins are a tad ahead of levels seen in the latter part of last year.The strong sales growth and low capital intensity of the group's businesses is continuing to generate positive cash flow, leading to further reductions in debt levels, the company said. ---jh