Arkema reports higher earnings; Raises full-year estimates

摘要

Arkema returned to profit in the third quarter mostly because of improved business conditions compared to the year-ago period. Arkema reported net income of european dollar 130 million compared to a year- ago loss of european dollar 3 million. Sales soared 41%, to european dollar 1.6 billion because of higher volumes across the company’s business units, higher selling prices, the acrylic activities acquired from Dow Chemical, and favorable currency exchange rates. Volumes in most prod- uct lines returned to levels before the economic crisis began in second-half 2008, Arkema says. Ebitda more than doubled, to european dollar 246 million, and recurring operating income was european dollar 172 million, up from european dollar 36 million. “The seasonality effect resulting from the traditional lower activity in August in Europe was less pronounced this year,” Arkema says. Arkema raised its full-year 2010 Ebitda estimate to european dollar 740 million because of strong results for the first nine months of the year. Arkema announced in August it expected Ebitda to exceed european dollar 600 million. The company’s 2009 Ebitda was european dollar 310 million. Third-quarter vinyl products Ebitda was european dollar 4 million, following five quarters of losses. Sales rose 14%, to european dollar 284 million. Market conditions in the European construction sector “showed a slight improvement over the previous year,” but conditions remain “difficult,” Arkema says PVC prices and margins rose compared to third-quarter 2009 and second-quarter 2010. Caustic soda prices also rose, the company says. Industrial chemicals revenues jumped 52%, to european dollar 800 million because of improved business con- ditions, selling price increases, and favorable currency exchange rates. Ebitda doubled, to european dollar 159 million. Performance products Ebitda was european dollar 92 million, 2.8-times higher than the year-ago period. Sales rose 45%, to european dollar 470 million. Volumes jumped 22% because of strong demand in Asia, particularly in technical polymers; and by the ongoing developments in fast-growing emerging applications, Arkema says. Higher selling prices, developments in photovoltaics and high performance biosourced polymers, and favorable cur- rency exchange rates also drove sales and earnings.