|
PARIS (Reuters) -- French specialty
chemicals maker Arkema struck a more optimistic tone for its outlook this year
as the first quarter showed a significant improvement against the year-ago when
the recession fully struck.
Arkema said on Tuesday its core earnings or earnings before interest, tax,
depreciation and amortisation were close to the level pre-crisis levels, partly
thanks to fixed cost cuts and growth in Asia, but that volumes were still
lower.
The more favourable market conditions seen in the first quarter carried on
into the second quarter, Arkema said, leading it to forecast core earnings in
the second quarter to be better than in the first quarter. At the earnings
presentation in March, Arkema said it targeted a significant improvement but
remained cautious on making any market assumptions after the credit crisis
dented demand from clients such as the car and building industries.
Arkema swung to a first-quarter net profit of 40 million euros against a loss
of 35 million. EBITDA surged to 137 million euros from 57 million euros on sales
up nearly 20 percent at 1.308 billion. Volumes in the quarter increased more
than a fifth, supported by strong demand in Asia, signs of a recovery in North
America, and expanding new energy markets.
For growth, Arkema's focus remained on Asia, the development of high
performance polymers and bolt-on acquisitions.
mrcplast.com |
