UPDATE: Arkema 2Q Net Loss EUR114 Million Vs Profit EUR60 Million
August 03 2009 - 1:19AM
Dow Jones News
French chemical group Arkema (AKE.FR) Monday swung to a net loss
in the second quarter due to a drop in sales on lower demand, but
raised its free cash flow guidance for the full year.
Arkema had a EUR114 million net loss for the three months to the
end of June, compared with a net profit of EUR60 million a year
earlier
The group's sales amounted to EUR1.17 billion in the second
quarter, down 23% from EUR1.51 billion a year earlier while
earnings before interest, tax, depreciation and amortization fell
56% to EUR70 million from EUR158 million a year earlier.
The group's net debt at the end of June amounted to EUR420
million, down from EUR495 million at the end of December.
Over the first half of this year, Arkema generated EUR135
million of free cash flow compared to a negative cash flow of EUR33
million a year earlier.
Arkema said it will continue its efforts to reduce fixed costs,
which should result in savings of EUR170 million in 2009, compared
with an initial target to EUR110 million. This represents in total
a new target of EUR600 million cumulative fixed-cost savings over
the 2006-2010 period.
"The global economic environment halfway through the year
remains highly challenging overall despite a few more positive
signs, including an improvement in volumes in China and a gradual
reduction in destocking at our customers," Arkema Chairman and
Chief Executive Thierry Le Henaff said.
In spite of the environment, Arkema said the worst quarters in
terms of sales volumes are "behind us" and revised its free cash
flow target for this year upward to EUR80 million from a initial
forecast of a barely positive free cash flow.
In a separate joint statement with U.S.-based Dow Chemical Co.
(DOW), Arkema also said Monday it is acquiring some acrylates and
latex assets from Dow Chemical for a fair-value consideration of
US$50 million.
Company Web site: www.arkema.com
- By Geraldine Amiel, Dow Jones Newswires; +33 1 40171740;
geraldine.amiel@dowjones.com