Elementis reports record earnings

The chemicals company, Elementis, says it achieved record earnings in 2011 on the back of a storming performance from its Speciality Products division.

Group revenues in 2011 were $760.5m compared to $697.4 million in 2010, a growth rate of 9%, or 7% on a constant currency basis.

Operating profit, before exceptional items, increased by 34% to $137.1m, or 30% on a constant currency basis.

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The company has three divisions: of those, Speciality Products and Chromium reported improved operating margins in the year but Surficants did not.

Diluted earnings per share, before exceptional items, improved by 37% to 20.8 cents in 2011, compared to 15.2 cents in the previous year.

The board is recommending a final dividend of 4.66 cents per share which will be paid on 1 June in sterling at an exchange rate of £1=$1.5723. This will bring total dividend to shareholders for the year to 7.00 cents representing an increase of 42% over 2010.

In its outlook statement Elementis says trading in 2012 "has started on a solid footing although economic uncertainties in Europe are still in evidence".

The company's stock has gained 30% in the last 12 months, although just after the open in London the shares had dropped 1.9%.

BS