Arkema results down on lower prices, volumes
Arkema SA has reported a 4.4% decline in first half earnings (EBITDA) at €777m, on flat sales of €4.4bn.
Petrotahlil :During the first six months of the year, volumes fell 2.4% compared to the year before, impacted by lower demand in automotive, oil & gas and consumer electronics, the French speciality chemicals company announced 1 Aug.
The 8% decline in volume was particularly noticeable within the high-performance materials segment. This was, however, offset by a 4.7% positive price development, leading to flat segment sales of €2bn.
Industrial specialities registered a 4% decline in sales during the first half, hit by 2.3% volume declines and 4.2% lower prices.
For the same period, Arkema witnessed “strong dynamic” in batteries and 3D printing as well as “good growth” in coating solutions, which registered 6.8% increase in volumes.
Prices across the group took a slight 0.6% hit for the period, impacted by lower prices in MMA/PMMA and fluorogases.
“Our performance, close to the record highs of last year, was driven in particular by the very solid performance of our speciality businesses,” said chairman and CEO Thierry Le Hénaff commenting on the results.
Looking forward, Arkema has confirmed its outlook for 2019 despite expecting the macroeconomic environment to remain “volatile and complex” in the second half of the year.
The environment, said Arkema, will be marked by continued geopolitical uncertainties, which are weighing on global demand and raw material volatility.
The company, however, expects the inventory adjustments observed in the first half of the year in certain end-markets to ease in the second half.
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