Home / Knowledge / News / Textiles / Sales at Arkema slip 3.3% in Q2
Sales at Arkema slip 3.3% in Q2
05
Aug '14
In the second quarter ending June 30, 2014, sales at France’s leading chemicals producer, Arkema fell 3.3% from a year ago to €1,520 million sales at constant business scope and exchange rate, despite volumes growing by 1.1 percent.
 
EBITDA too tanked steeply to €206 million from €273 million from the same quarter of 2013. However despite the challenging environment, EBITDA margin held up good resilience at 13.6%, Arkema said.
 
The strength of the euro versus the US dollar continued to impact the Group’s performance with a €6 million translation effect in the quarter under review. 
 
In line with the EBITDA trend, recurring operating income stood at €126 million against €195 million in second quarter of 2013, after deduction of €80 million depreciation and amortization, slightly up from last year.
 
Non-recurring items stood at a negative €22 million. They mostly correspond to various restructuring charges, including those related to the shutdown of production of coating resins on the Stallingborough site (United Kingdom) announced in second quarter and to various expenses related to acquisition and divestment operations.
 
Financial result too stood at a negative €16 million against a negative €13 million in corresponding quarter of 2013. It includes a €3 million charge relating to actuarial losses on provisions for long-service awards due to employees in France booked to take into account lower discount rates.
 
Income taxes amounted to €41 million, which is 32.5% of recurring operating income. They included a €4 million contribution due on the dividend paid out in May 2014. Excluding this contribution, the tax rate would stand at 29.4% of recurring operating income, reflecting the share of the Group’s results achieved in the United States.
 
Arkema Group net income plunged to €47 million in the quarter under review against €112 million from a year earlier, while net debt was slightly down to €1,106 million. 
 
Thierry Le Hénaff, Chairman and CEO of Arkema, said, “The performance in the second quarter is below our expectations due to lower volumes than expected in acrylics as well as a number of specific elements in polyamides. 
 
“However, we remain fully convinced of the relevance of the Group’s long term strategy and of our ability to benefit over the next three years of our various ongoing projects. After a sharp growth in Arkema’s results in the six years following our stock market listing, 2013 and 2014 represent a transition phase marked by the launch of many growth projects and by more challenging market conditions”. 
 
Arkema is however was optimistic of the future. Following a thorough review of each business unit, it still expects to achieve its 2015 mid-term targets of €8 billion in sales and an EBITDA margin of 16%. But it has pushed back targets set for 2016 to 2017. 
 

Fibre2fashion News Desk – India


Must ReadView All

Serbian economy minister Goran Knezevic (left) and Taypa president Mesut Toprak after signing the MoU. Courtesy: Serbian Government/SeeNews

Textiles | On 20th Oct 2017

Turkish group Taypa to build textile factory in Serbia

Turkish textile group Taypa will invest euro 35 million ($41.2...

China’s textile & apparel exports rise 4.3% in Sept ’17

Textiles | On 20th Oct 2017

China’s textile & apparel exports rise 4.3% in Sept ’17

Registering an increase of 4.3 per cent year-on-year, the exports of...

Courtesy: Messe Frankfurt

Textiles | On 20th Oct 2017

Heimtextil to focus on textile solutions for architects

Heimtextil 2018, world's leading trade fair for home and contract...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search