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Arkema records EBITDA margin of 15% in 2013
04
Mar '14
“With a solid EBITDA margin of around 15%, Arkema in 2013 demonstrated its ability to adapt to a less favourable environment than in 2012.
 
In this context, Arkema continued to strengthen its relationships with its major commercial partners, controlled its fixed costs rigorously, and continued to optimize its industrial operations. 
 
The Group also continued to resolutely implement its long-term strategy through a large number of projects which will bear fruit in the near future, for example, the construction of the thiochemicals platform in Malaysia, the announcement of our first industrial investment in the Middle East and the acquisition of Jurong’s acrylic assets in China, all of which are highly promising projects that demonstrate our know-how. 
 
Highlights: 
-€6.1 billion sales close to 2012 sales at constant scope of business and foreign exchange rate, supported by volumes up by +1.4%
-Solid EBITDA margin close to 15%
-€902 million EBITDA (down 7% at constant scope of business and exchange rate)
-Sharp improvement in High Performance Materials results in Q4, but full year performance down compared to the high basis of comparison in 2012
-5% EBITDA growth in Coating Solutions supported by capex and improvement in the decorative paint market in North America
-Performance of Industrial Specialties impacted by market conditions in Fluorogases
-€923 million net debt (1x EBITDA)
-4Q'13: adjusted net income up 4.5% on last year, driven by sharp improvement in High Performance Materials
-Proposed dividend of €1.85 per share (€1.80 for 2012)
 
Thierry Le Hénaff says, “The quality and diversity of our projects bolster our confidence in our ability to achieve our medium-term targets and illustrate the Company’s potential for further value creation.”
 
Outlook
For 2014, market conditions should remain contrasted between the various regions. Meanwhile, a stable €/$ exchange rate compared to last year is assumed.
 
In 2014, the Group will pursue its growth strategy by implementing a capex program of some €450 million. The closing of the project to acquire Jurong’s acrylics assets in China, the start up of the Thiochemicals platform in Malaysia, the acceleration of R&D programs on composites, bio-sourced polymers and batteries and the implementation of productivity initiatives will be the top priorities of the year.
 
While remaining cautious about the economic environment, Arkema is confident in its ability to grow EBITDA in 2014. Over the longer term, Arkema confirms its ambition to achieve €8 billion sales and a 16% EBITDA margin by 2016, and €10 billion sales and close to 17% EBITDA margin by 2020.

Arkema

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