15 May 2013 06:52 [Source: ICIS news]
SINGAPORE (ICIS)--Arkema swung to a €30m ($39m) net loss in the first quarter of 2013 from a profit of €100m in the previous corresponding period, because of heavy one-off expense related to the divestment of its vinyl operations, it said on Wednesday.
The company incurred a charge of €127m following the insolvency proceedings concerning Kem One SAS – the company operating the upstream activities (chlorine / caustic soda electrolysis and PVC) of the vinyl activities sold by Arkema to the Klesch group, the French specialty chemicals firm said in a statement.
“The booked amount corresponds to Arkema’s estimated overall exposure to Kem One SAS,” it said.
Arkema’s sales for the first three months of the year slipped 3.7% year on year to €1.56bn, with adjusted net income from continuing operations falling by 21% year on year during the period to €97m, the company said.
“Volumes [of sales] recorded a slight decline [of 1.3%] compared to first quarter 2012. They reflect the slow start of the High Performance Materials segment at the beginning of 2013, affected, as expected, by the weak demand in some end-markets, in particular for fluoropolymers,” Arkema said.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) in the March quarter declined 7.5% year on year to €234m, with EBITDA margins falling to 15.0% from 15.6% in the same period last year.
Arkema said it is still targeting to generate €8bn in sales in 2016, with an EBITDA margin of 16%.
($1 = €0.77)
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