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Elementis announce interim results for the half year ended 30 June 2006

Published on 2006-08-04. Author : SpecialChem

  • Sales £210.9 million (2005: £199.6 million);+6%
  • Operating profit* £18.1 million (2005: £7.4 million); +145%
  • Profit before tax* £14.4 million (2005: £3.9 million); +269%
  • Earnings per share before exceptional items* 3.2 pence (2005: 0.8 pence); +300%
  • Earnings per share after exceptional items* 3.2 pence (2005: 0.5 pence);
  • Dividend/distribution to shareholders 1.2 pence (2005: 1.1 pence); +9%
  • Volumes in Specialty Products and Pigments up 10%, driven by coatings and oilfield sectors
  • Specialty Products operating margin 15.4%, up by 43%
  • Operating profit up in Pigments and Chromium
  • £6.8 million of restructuring cost savings achieved in first half of 2006.

Commenting on the results, Executive Chairman, Edward Bramson said:

"Sales of Pigments and of Specialty Products, principally rheological additives, increased significantly from the prior year. While this is partly attributable to favourable conditions in the coatings and oilfield markets, we believe that Elementis also gained market share due to improved customer service levels and more effective sales efforts resulting from actions taken as part of the strategic review. Operating margins increased in each line of business except surfactants as fixed cost reductions announced in the strategic review were combined with improved pricing in Chromium and higher sales in other products. Specialty Products in particular generated a significant increase in sales and operating margins, and we are pleased that this business is now generating returns that compare well with other leading specialty chemical companies."

"The Company is continuing its efforts to generate organic sales growth, to increase new product development and to achieve further operating efficiencies. Current indications are that market conditions in the second half will be similar to those in the first half which should enable the company to generate earnings that are ahead of full year expectations."

Source: Elementis

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