Elementis profits hit by slowdown in oilfield drilling

Speciality chemicals group Elementis said it remains on track to hit earnings per share (EPS) forecasts this year due to a lower tax rate, but headline operating profits will be hit by a temporary slowdown in oilfield drilling.

Speciality chemicals group Elementis said it remains on track to hit earnings per share (EPS) forecasts this year due to a lower tax rate, but headline operating profits will be hit by a temporary slowdown in oilfield drilling.

The company, which provides functional additives to many markets including architectural and industrial coatings, personal care and oilfield drilling, said it saw a reduction in demand in oilfield drilling during the third quarter on the back of a slowdown in shale drilling activity in North America and a late start to the Canadian drilling season. Oilfield drilling - part of the Speciality Products division - accounts for 15% of group sales.

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