France’s Arkema swings to Q3 net profit on buoyant demand

09 November 2010 07:17  [Source: ICIS news]

SINGAPORE (ICIS)--Arkema posted a third-quarter net income of €130m ($181m), a sharp reversal of the €3m loss incurred in the same period last year, partly due to buoyant demand from Asian markets, the French specialty chemicals company said on Tuesday.

Adjusted net profit in the three months to September surged to €128m from €8m in the previous corresponding period, with sales jumping 41% year on year to €1.56bn, Arkema said in a statement.

Revenue was boosted by a 10.5% increase in sales volumes, while recurring operating income soared to €172m from €36m in the same period last year, the company said.

Earnings before interests, taxes, depreciation and amortisation (EBITDA) for the September quarter more than doubled to €246m from €101m in the same period last year, it said.

Demand in Asia, where the company derives 20% of its sales, remained very strong, it added.

The acrylic business acquired from US chemical producer Dow also helped increase sales by 11.1%, Arkema said.

For the first nine months of the year, Arkema said swung into a net profit of €289m from a loss of €152m in the previous corresponding period, with sales recording a 33% jump to €4.47bn.

EBITDA for the January-to-September period stood at €624m, a sharp increase from €228m in the same period last year, Arkema said.

The company said it expected its full-year EBITDA to be around €740m, after taking into account an estimated €20m charge from external strikes related to national pension reforms in France.

($1 = €0.72)

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By: Nurluqman Suratman

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