MOSCOW (MRC) -- French chemicals specialist Arkema said it swung to a net profit in the second quarter and said it aims to post strong results for the rest of the year despite deteriorating market conditions in its home country France, said The Wall Street Journal.
"Market conditions in Europe are challenging, in particular in France where growth prospects have deteriorated since the end of last year and where the group continues to consider ways to improve its productivity," Thierry Le Henaff, Chairman and CEO, said in a statement.
In this environment, Arkema should achieve in the second half of the year an EBITDA similar to the record level of the second half of 2012. Compared to 2012, the third quarter EBITDA should be lower than the high reference of last year and the fourth quarter stronger.
Arkema continues to implement its focused growth strategy with several progresses and confirms its ambition for 2016 to achieve EUR8 billion sales and 16% EBITDA margin while maintaining gearing below 40%. Sales in the second quarter fell 5.2% to EUR1.63 billion from EUR1.72 billion in the same period last year.
Net profit in the first half totaled EUR112 million compared with a loss of 12 million in the same period a year ago. EBITDA fell 11% to EUR273 million from EUR306 million.
As MRC wrote before, Arkema announced a comprehensive range of PEKK (Poly Ether Ketone Ketone) ultra high performance polymers comprised of three families of products whose properties meet the requirements of aerospace, oil exploration and electronics applications.
Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. As MRC reported previously, Moody's Investors Service had upgraded Arkema S.A.'s senior unsecured rating to Baa2 from Baa3. The outlook on the rating was changed to stable from positive.
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