Home / Knowledge / News / Textiles / Arkema Industrial Chemicals sales rise by 3.6%
Arkema Industrial Chemicals sales rise by 3.6%
Aug '08
At the close of the Board of Directors meeting which reviewed Arkema's condensed consolidated financial statements for the first six months of 2008, Thierry Le Hénaff, Chairman and CEO of Arkema, stated:

Arkema's very strong performance in the second quarter fully illustrates the transformation undertaken within the Group over the last three years. EBITDA margin stands at 10.5% of sales and EBITDA is up 11% at constant conversion rates despite a more challenging environment characterized, in particular, by the sharp increase in the cost of several raw materials.

This result is supported by the very significant improvement in the Industrial Chemicals and Performance Products segments, which each reported an EBITDA margin exceeding 14%, moving closer to the best players in the sector.

Over the second half of the year, in an economic environment that remains challenging and uncertain, Arkema will continue to take the necessary measures to adapt accordingly. The 2008 EBITDA margin target is maintained at 10%.

Sales in the 2nd quarter 2008 rose 1.3% to €1,509 million, against €1,489 million in the 2nd quarter 2007. Excluding the impact of exchange rates (-4.6%) and variations to the scope of business (-0.5%), sales rose by 6.4%, sustained primarily by price increases (+5.4%) implemented in the Industrial Chemicals and Performance Products segments, while volumes also improved slightly (+1.0%).

EBITDA was up 5.3% to €158 million against €150 million in the 2nd quarter 2007. The conversion effect related to the decline of the US dollar versus the euro is estimated at –€9 million, i.e. an EBITDA growth of 11% excluding the conversion effect. The contribution of new products and productivity measures, in line with the targeted €80 million EBITDA improvement announced for 2008, helped more than compensate the impact of a more challenging economic environment, in particular in the Vinyl Products segment.

Arkema reported an EBITDA margin of 10.5% of sales in the quarter against 10.1% in the same period in 2007.

Recurring operating income was stable at €97 million, taking account of higher depreciation charges following the startup of new units.

Non-recurring items stood at -€15 million in the 2nd quarter 2008. This amount corresponds to the cost of restructuring plans announced in the 2nd quarter.

Adjusted net income rose by 7%, while net income (Group share) was multiplied by 2.6 to €60 million.

Vinyl Products sales rose by 5.1% to €395 million, against €376 million in the 2nd quarter 2007, underpinned primarily by strong demand for caustic soda and sound volumes for PVC in Europe albeit with strong variations from one country to another. The segment's EBITDA stood at €14 million (against €33 million in the 2nd quarter 2007), with the ongoing and sharp hike of ethylene and natural gas prices weighing heavily on the level of unit margins. The productivity drive continued over this period.

Must ReadView All

Courtesy: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Abhishek Samdaria

GST will certainly reduce a lot of paperwork in future

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

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


Browse Our Archives


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