Home / Knowledge / News / Textiles / Good resilience of Industrial Chemicals results, Arkema

Good resilience of Industrial Chemicals results, Arkema

Aug '09
Arkema announces second quarter results.

At the close of the Board of Directors meeting which reviewed Arkema's condensed consolidated accounts for the first six months of 2009, Thierry Le Hénaff, Chairman and CEO of Arkema, stated:
"Arkema's teams were very quick to gauge the scale of the current crisis, and, since the end of last year, have been deploying quickly and successfully the necessary efforts to adapt to the situation by giving priority to generating cash and reducing fixed costs. Three figures in particular reflect the work achieved in the first six months of 2009: €135 million free cash flow despite a 23% drop in volumes, net debt representing 23% of shareholders' equity, and a reduction of around 10% in fixed costs. We are very pleased with what we have achieved, as this is helping Arkema face the crisis with confidence."

2nd quarter 2009 activity
Sales stood at €1,167 million against €1,509 million in the 2nd quarter 2008. This 22.7% decline was due primarily to a drop in volumes (-18.2%), as demand remained weak in many market segments, and to further de-stocking at customers . The price effect (–6.5% on average) observed primarily in PVC and Acrylics reflects the very sharp drop in the cost of ethylene and propylene in the 2nd quarter 2009 compared to the 2nd quarter 2008. The translation effect was positive (+2.8%) as a result of the dollar's strengthening vs the euro, and the effect of variations to the scope of business remained limited (-0.7%).

The decline in volumes in the 2nd quarter 2009, lower than in the 1st quarter, reflected a recovery in the activity in China and a progressive reduction in de-stocking.

EBITDA stood at €70 million against €158 million in the 2nd quarter 2008. The impact of the sharp drop in volumes was partly offset by the ongoing implementation of productivity measures and a reduction in overhead costs which account for a €86 million improvement over the 1st six months of 2009.

Recurring operating income stood at €2 million, and included depreciation of €68 million, €7 million up over the 2nd quarter 2008.

Non-recurring items accounted for –€94 million, and primarily included costs related to the restructuring plans announced in the 2nd quarter 2009 in North America and in the methacrylates activity in Europe2.

Net income (Group share) therefore stood at –€114 million against +€60 million in the 2nd quarter 2008.

Segment performance
Vinyl Products sales stood at €266 million euros, 33% down on the 2nd quarter 2008. EBITDA stood at –€7 million against €14 million in the 2nd quarter 2008. This quarter was marked by a sharp decrease in caustic soda prices, the impact of which was eased by a significant improvement in PVC prices and volumes compared to the 1st quarter 2009 and by the productivity measures undertaken in downstream activities.

Industrial Chemicals sales stood at €543 million against €682 million in the 2nd quarter 2008, reflecting weak demand. EBITDA for the segment remained sound at €75 million against €96 million in the 2nd quarter 2008 thanks to a resilient performance in Fluorochemicals, Thiochemicals and Specialty Acrylic Polymers, with unit margins for Acrylics and PMMA remaining under pressure. The many productivity measures undertaken in particular in PMMA, Acrylics and Thiochemicals continued to sustain the segment's performance.

Performance Products sales stood at €355 million in the 2nd quarter 2009, 17% down on the 2nd quarter 2008 (€430 million). Weak demand in the automotive and construction sectors continued to affect strongly sales volumes in Technical Polymers. EBITDA stood at €23 million against €61 million in the 2nd quarter 2008, with major fixed costs savings in the segment's 3 activities helping mitigate the impact of lower demand.

The Corporate segment reported EBITDA of –€21 million in the 2nd quarter 2009, and included an impact of –€15 million related to measures taken to optimize inventory levels.

Must ReadView All

Pic: Shutterstock

Textiles | On 28th Jan 2022

Trade of China’s Shenzhen with RCEP members exceeds $147 bn in 2021

The trade volume between the southern Chinese city of Shenzhen and...

Pic: Shutterstock

Apparel/Garments | On 28th Jan 2022

Egypt’s garment exports rise by 41% to $2.49 bn in 2021 over 2020

The Egyptian apparel sector’s exports rose by 41 per cent in 2021 to...

Pic: Prasit Rodphan | Dreamstime.com

Textiles | On 28th Jan 2022

Cambodia-Vietnam trade volume touches $9.3 bn in 2021

Cambodia-Vietnam trade volume touched $9.3 billion last year—a rise...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Instagram & fashion will go a long way together

Textile Industry, Head honchos

Textile Industry
Head honchos

Liquidity is a primary issue in Indian context

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Raiyan Islam,

Raiyan Islam

Founded in 1981 by Sayeeful Islam, Concorde Garments Group is a market...

Ilker Hacioglu,

Ilker Hacioglu

Founded by three partners of French origin in 1988, LC Waikiki started its ...

Vikash & Vishal Pacheriwal,

Vikash & Vishal Pacheriwal

Launched in 2018, Raisin is a contemporary fusion fashion brand that aims...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Dr Anup Rakshit, ITTA

Dr Anup Rakshit

The Indian Technical Textile Association (ITTA) is the only association of ...

Bav Tailor, Label Bav Tailor

Bav Tailor
Label Bav Tailor

Born in London and Indian by origin, <b>Bav Tailor </b>is the Founder of...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Anjali Bhaskar, Samatvam

Anjali Bhaskar

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

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


Leave your Comments


Bluestem Global Sourcing Limited
MAS Active / MAS Kreeda / MAS Bodyline
Rayonese Textile Inc., Division de Culp Inc.
NITI Aayog
Gatsby Africa
Chori Company Limited
Alix Partners
Varner AS Retail
Sainsbury's Argos Asia Limited
Arvind Limited
Maceton Limited
IDH – The Sustainable Trade Initiative
Hirdaramani International Export Private Limited
PVH Corporation
Rosset ;& Cia Limited
Grasim Industries Limited
Midas Clothing Limited
John Varvatos
Alison Hayes Romania
The LYCRA Company Singapore  Pte. Ltd
Page Industries Limited (Bangalore)
Truetzschler India Private Limited
Esprit Europe Services GmbH
H;&M Hennes ;& Mauritz (Far East) Ltd
Landmark Group
Groz-Beckert East Asia LLP
Sateri (Jiujiang) Fiber Co.,Ltd
OVS Hong Kong Sourcing Ltd.
Lacoste (Wanchai)
LC Waikiki
Chico’ FAS
Hela Clothing Pvt Ltd
Guess Europe Sagl,
T.T. Limited
KAS Direct Sourcing
Lisa S.P.A.
Lenzing Aktiengesellschaft
SHAHI Exports Pvt Ltd
Cat Tuong Real Estate Group Joint Stock Company
Calvin Klein
Eastman Chemical Company
Reiter India Private Limited
Amazon China
Sportmaster Ltd.
Recron Polyester from Reliance Industries Limited
The Top Form Brassiere Manufacturing Company Limited
Benetton Group
IKEA of Sweden AB
Desigual - ABASIC, S.A.
Gloria Jeans
Phong Phu international JSC (PPJ)
Etam Group Strategy Hong Kong Limited
Vianney Textil Hogar S.A. De C.V.
Gap International Sourcing Limited
Restoque S.A.
Target Corporation (MN)
Brandix Lanka Limited
Huntsman (Singapore) Pte Ltd
Deckers Outdoor (Guangzhou) Consultant Co., LTD.
G-Star Raw C.V.
International Textile Manufacturers Federation
Tory Burch Hong Kong Ltd
Aramark Uniform ;& Career Apparel, LLC
Gokaldas Exports Limited
Green Fibre
C;&A Sourcing International Ltd
Tchibo GmbH
Tommy Hilfiger
Aquarelle Clothing Limited
Vardhman Textile Ltd
Under Armour Global Sourcing Ltd
J ;& P Coats
Boardriders Asia Sourcing Limited

January 2022

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

Advanced Search