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Elementis Lifts Profit Guidance After Strong Q3 Sales Growth
Elementis PLC (LON:ELM) has raised its full-year profit forecast following an acceleration in sales growth during the third quarter. The specialty chemicals firm now anticipates full-year EBITA to be between $133 million and $135 million, an upgrade that aligns with the current market consensus of $134.7 million.
Sales Accelerate in Third Quarter
In a trading update released Wednesday, Elementis reported that sales grew by approximately 11.5% in the third quarter compared to the same period last year. This marks a significant pickup from the 4.7% growth seen in the first half of the year.
The strong quarter pushed sales for the nine months ended September 30 up by 7% on an organic constant currency basis, reaching a total of $479 million. The company attributed the performance to strength in its Personal Care division, continued momentum in Asia, and improved results in the Americas.
AdDivisional Performance
Growth was primarily driven by the Personal Care segment, which saw increased sales across all regions during the third quarter. Elementis noted that this division benefited from a weaker prior-year comparison and some favorable order timing in September, signaling a recovery from a soft first quarter.
The Coatings segment also contributed positively, with strong demand from the Energy business and operational improvements at its St. Louis plant. Robust performance in Asia helped offset weaker results in Europe, the Middle East, and Africa. However, the company cautioned that sales growth in Coatings is expected to slow in the fourth quarter due to more challenging year-over-year comparisons in Asia.
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