France's Arkema Q3 adjusted net profit up 2% on stronger prices

09 November 2011 07:32  [Source: ICIS news]

SINGAPORE (ICIS)--Arkema’s adjusted net profit in the third quarter inched up  by 1.56% year on year to €130m ($181m) as stronger product prices helped offset spikes in raw material costs and a one-off charge, the French specialty chemicals firm said on Wednesday.

The third-quarter results included a non-recurring charge of €27m related to the acquisition of Total’s specialty resins businesses, the company said.

Arkema’s revenues in the July-September period grew by 18.6% year on year to €1.85bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 6.91% to €263m, the company said in a statement.

The company’s financial performance for the quarter was within expectations, said Thierry le Henaff, chairman and CEO of Arkema.

“This performance was boosted by strong growth in Asia, a region that now accounts for 20% of our sales, and new markets developed with our performance polymers, in particular in solutions for sustainable development,” he said.

“The end of [the] third quarter saw a growing caution by certain customers in their inventory management, reflecting the current macroeconomic conditions,” he added.

The company’s actual net profit fell 16% year on year to €109m in the third quarter,  bringing its nine-month profit to €444m, up 53.6% year on year.

Adjusted net income for January-September 2011 stood at €474m, 65.7% higher compared to the previous corresponding period, Arkema said.

Its overall sales grew by 19.7% year on year to €5.36bn in the same period, while EBITDA surged by 39.4% to €474m, it said.

($1 = €0.72)

By: Nurluqman Suratman

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