Arkema nearly doubles Q1 op profits to €105m

14 May 2008 08:49  [Source: ICIS news]

MUMBAI (ICIS news)--France-based Arkema nearly doubled first-quarter operating profits to €105m ($163m) from €53m for the year-ago period on sales price increases, productivity measures and the introduction of new products, the firm said on Wednesday.

"The excellent results of the first quarter 2008 illustrate Arkema’s resilience in an environment marked by the continuing rise in raw material and energy costs and weakening of the US dollar versus the euro," it added.

In the vinyl products segment, operating profit dropped €2m to €12m year on year, but rose €41m to €65m in industrial chemicals and €4m to €37m in performance products.

The manufacturer’s net sales for the period rose marginally to €1.49bn to €1.48bn, while its net profit increased 60% to €72m from €45m, it said.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 18% to €159m from €134m, it added.

The producer sees pressure on polyvinyl chloride (PVC) margins to remain with the continuing increase in the price of  ethylene, Arkema said.

Arkema confirmed its 10% EBITDA margin target, which come from improvements in the industrial chemicals and performance products segments, it said.

($1 = €0.65)

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By: Aaron Rodrigues
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