France's Arkema swings to Q1 net loss of €35m

13 May 2009 06:52  [Source: ICIS news]

SINGAPORE (ICIS news)--French chemical maker Arkema has posted a first-quarter net loss of €35m ($48m) due to a “very sharp drop” in demand and destocking by its customers, the company said on Wednesday.

The company made €72m net profits in the first quarter of 2008.

Arkema said its first-quarter sales declined 26.8% year on year to €1.09bn.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at €57m during the period, sharply lower than €159m in the first quarter of 2008, as the economic environment was "very poor", the company said in a statement.

“For the coming months, visibility regarding the evolution of market conditions remains very low, and except for some more positive signs in China, we cannot see any noticeable improvement in the economic environment,” said Arkema chairman and CEO Thierry Le Henaff.

“In this context, we will be pursuing our efforts to adapt production capacities and enhance productivity with the same intensity in the coming weeks and months,” Le Henaff said.

($1 = €0.73)

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By: Pearl Bantillo
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