Home / Knowledge / News / Textiles / Arkema Industrial Chemicals sales rise by 3.6%
Arkema Industrial Chemicals sales rise by 3.6%
07
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%.

SECOND QUARTER 2008 PERFORMANCE:
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.

SEGMENT PERFORMANCE:
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

Textiles | On 29th Jun 2017

Nan Ya files trade petition in US against Korea & Taiwan

Nan Ya Plastics Corporation, America, a US synthetic fibre producer,...

Textiles | On 29th Jun 2017

Indian textile industry will reach new milestone by 2020

By 2020, textile technologies will be highly advanced not only with...

Apparel/Garments | On 29th Jun 2017

Amazon intends to keep investing and growing in India

American online retail giant Amazon intends to keep investing and...

Interviews View All

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Varinder Singh Jawanda
Trendy Bharat

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X