Elementis profit up 5 pct on specialty products business

Tue Feb 26, 2013 2:26am EST

Feb 26 (Reuters) - British chemical maker Elementis Plc reported a 5 percent rise in full-year profit on strength at its specialty products business, which provides additives to the oilfield drilling industry.

The company, which caters to customers in North and South America, Europe and Asia Pacific, said sales for the year fell marginally to $747 million from $760.5 million a year earlier. Specialty Products sales rose 2 percent to $458.7 million.

Pretax profit rose to $141.2 million from $134.5 million a year earlier.

Elementis, a member of the FTSE 250 Index, warned in October that a temporary slowdown in oilfield drilling would hurt its full-year operating profit.

Faced with an economic slowdown in Europe and a decline in North American drilling activity, Elementis has increased its exposure to an improving U.S. housing market.

The company's shares have risen 16 percent since June, lagging the broader FTSE mid-cap sector that rose 24 percent in the same period.

The shares of the company closed at 227.8 pence on the London Stock Exchange on Monday.

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