Arkema Q3 net income up 8.1% on higher prices

13 November 2008 09:41  [Source: ICIS news]

LONDON (ICIS news)--Arkema’s net income for the third quarter rose 8.1% to €40m ($50m) from €37m in the same period last year on the back of price increases, the French company said on Thursday.

Sales in the third quarter were 5.1% higher than in the corresponding three months last year at €1.45bn.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 5.5% to €134m from €127m during the third quarter last year.

“The good results of the third quarter demonstrate the further structural improvements ongoing throughout the group and its ability to resist to a tougher economic environment,” said Thierry Le Henaff, chairman and CEO.

“This new EBITDA growth is supported by high price increases and also the productivity and focused growth projects. These projects should generate €100m EBITDA gain expected for 2008,” he added.

Henaff said that since October there had been a sudden ongoing demand slowdown in some markets, particularly in automotive and construction, which had been amplified by destocking and limited the visibility on the economic environment in the fourth quarter.

“In this context, Arkema’s priority is to continue to implement its structural projects especially in order to reduce significantly its fixed costs and to strictly manage its working capital by adjusting, if needed, the utilisation of its production capacities,” he said.

($1 = €0.80)

For more on Arkema visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Hilde Ovrebekk
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly