US sales buoy Elementis

Chemicals company, Elementis, said it was on track to hit full year earnings forecasts after a good start to the year.

Trading for the first three months of 2012 was ahead of the same period last year, the firm said.

This reflected excellent progress in a number of key markets, which more than offset a fall in business in Europe, the company said.

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Sales of coatings additives grew by 22% in North America as the business benefited from improving customer demand and market share gains.

The firm also benefitted from a 42% growth in sales to the oil and gas drilling sectors.

It was a different story in Europe where sales fell by 8% compared with the year before.

"The trend of robust margins, in combination with a solid order book, has continued and we expect full year earnings to be in line with market expectations." said Chief Executive David Dutro.

Just to keep investors in suspense, the firm said it was "in the process of reviewing the appropriate balance between cash reinvestment and shareholder returns and expects to provide an update on this at the time of the announcement of its interim results".