Arkema posts adjusted Q2 net profit up 7.4%

07 August 2008 08:58  [Source: ICIS news]

LONDON (ICIS news)--Arkema increased second-quarter adjusted net profits 7.4% to €73m ($113m) from €68m for the year-earlier period on good margins in the industrial chemicals and performance products segments, the French specialty chemicals group said on Thursday.

Group share net income nearly tripled to €60m from €23m in the second quarter of 2007.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 5.3% to €158m from €150m, while sales were 1.3% higher at €1.5bn.

“Arkema’s very strong performance in the second quarter fully illustrates the transformation undertaken within the group over the last three years,” said chairman and CEO Thierry Le Henaff.

“EBITDA margin stands at 10.5% of sales and EBITDA is up 11% at constant conversion rates despite a more challenging environment characterised, in particular, by the sharp increase in the cost of several raw materials,” he added.

Le Henaff said the the industrial chemicals and performance products segments each reported an EBITDA margin exceeding 14%.

EBITDA margins for vinyl products, however, slipped to 3.5% from 8.8% during the same quarter last year, affected by the ongoing and sharp hike in ethylene and natural gas prices.

“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%,” Le Henaff said.

($1 = €0.65)

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By: Hilde Ovrebekk
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