Arkema, Akzo results seen in line - Citigroup

26 February 2008 15:44  [Source: ICIS news]

TORONTO (ICIS news)--European chemicals majors Arkema and Akzo Nobel should report 2007 financial results in line with expectations, Citigroup said on Tuesday in a preview of upcoming results announcements next week.

 

“We expect a solid set of 2007 results [for Arkema],” Citigroup said.

 

With scope for further restructuring, a limited exposure to the US and a strong management team, France-based producer Arkema was one of the better-placed industrial specialties companies, the analysts said.

 

Citigroup forecast 2007 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for Arkema at €510m ($761m) after the company already reported full-year sales at €5.7bn, in line with analysts’ expectations.

 

Arkema’s 2008 EBITDA should be around €565m, slightly below the company’s guidance, because of the strong euro and signs that European polyvinyl chloride (PVC) demand was softening from very high 2007 levels, Citigroup said.

 

Netherlands producer Akzo Nobel told investors last month to expect earnings before interest and tax (EBIT) of some €900m for the year on the back of 2% sales growth, Citigroup said.

 

Key to the outlook for Akzo would be the timing of the disposal of its adhesive and starch business, demand prospects for decorative paints in 2008, cost pressures and pricing trends, as well as progress in integrating ICI, Citigroup said.

 

Arkema and Akzo were scheduled to report results on 5 and 6 March, respectively, Citigroup added.

 

($1 = €0.67)

 

By: Stefan Baumgarten
+1 713 525 2653

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