Arkema Q3 net income up, earnings grow for all divisions

LONDON (ICIS)–Arkema’s third-quarter net income rose 22.5% year on year to €174m on the back of stronger earnings for all three divisions and ongoing robust thiochemicals and hydrogen peroxide demand, the France-headquartered specialty chemicals player said on Tuesday.

€m	Q3 2018	Q3 2017	Change %
Net Income – group share	174	142	22.5
Sales	2,167	2,019	7.3
EBITDA	374	355	5.4
Recurring operating income	265	247	7.3

The company reported its strongest ever third-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) this year, driven by its industrial specialties business, despite a slight normalisation of polymethyl methacrylate (PMMA) pricing toward the end of the quarter.

Despite the banner quarter, Arkema held back from raising its outlook for 2018 as a whole beyond earlier projections of mid-single digit EBITDA growth, citing a volatile global macroeconomic environment and higher raw material pricing.

“We are proud to announce our best-ever third-quarter performance, with EBITDA coming in at €374m, representing a further increase on the excellent third quarter of 2017,” said Arkema CEO Thierry Le Henaff.

“Our high level of cash generation enabled us to keep our net debt well under control at 0.8 times the last 12 months’ EBITDA,” he added.

High performance materials division EBITDA rose €1m year on year to €162m despite higher raw material prices on demand from the lightweight materials and consumer goods sectors, and the integration of bolt-on acquisitions in its adhesives operations.

Third-quarter coating solutions division EBITDA rose 4.8% year on year to €65m on firmer acrylic monomers, while industrial specialties earnings rose 10.7% over the same period to €165m.

Pictured: Arkema’s offices in China
Source: Arkema