Arkema Q2 net income swings to €117m, sales climb 38% to €1.61bn

LONDON (ICIS)--Arkema posted second-quarter adjusted net income of €117m ($154m), compared with a loss of €25m in the same period last year, on a rise in volumes, sales prices and demand, the French specialty chemicals company said on Tuesday.

Arkema's sales in the April-June period jumped 38% year on year to €1.61bn, while recurring operating income rose to €169m from €2m in the second quarter of 2009.

The company said volumes increased by 12% at constant scope of business, supported by strong demand in Asia, an improvement in North America and the contribution of new developments in growing markets.

Increases in sales prices, notably in acrylics, exceeded those of raw materials costs and resulted in an 11% price effect, Arkema said.

"These results are especially encouraging as volumes are still below pre-crisis levels and vinyls remain affected by a weak construction market in Europe," said chairman and CEO Thierry Le Henaff.

"The level of performance achieved in the first six months allows us to increase significantly our full-year EBITDA (earnings before interest, tax, depreciation and amortisation) target, with a 2010 EBITDA target exceeding €600m. 2010 should therefore be an excellent year for Arkema," he added.

($1 = €0.76)