Second-quarter 2018 results
- Sales up 6.7% year on year to €2,270 million (at constant exchange rates and business scope)
- Robust 8% EBITDA growth on Q2 2017 to €430 million (up 12.6% at constant exchange rates)
- All three divisions reported EBITDA growth despite the unfavorable effect of currencies and raw materials
- EBITDA margin up to 18.9% (from 18.1% in Q2 2017)
- Very strong 31% increase in adjusted net income to €226 million, representing €2.97 per share
- Net debt of €1,372 million (versus €1,227 million at end-March 2018), taking into account the €176 million dividend payment in late May 2018, representing a gearing of 29%
- Outlook for full-year 2018 revised upwards
The Board of Directors of Arkema met on 31 July 2018 to close the Group's consolidated financial statements for the first half of 2018. At the close of the meeting, Chairman and CEO Thierry Le Hénaff stated:
“For the first time in the Group’s history, quarterly EBITDA exceeded €400 million, a record high. This operating performance led to a sharp increase in the adjusted net income at close to three euros per share.
In a persistently volatile global context, marked by high raw materials costs, an unfavorable currency effect and geopolitical tensions, the Group benefited from its growth strategy and strong commercial and industrial positioning. Arkema’s performance was led by high demand for advanced materials in the areas of lightweight materials, 3D printing, new energies and consumer goods, by targeted acquisitions in adhesives and by robust momentum for our intermediate chemical businesses.
On the strength of these results and remaining attentive to global economic developments, we are highly confident in our ability to deliver an excellent full-year performance in 2018.”
Outlook for 2018
In the second half of the year, the Group will remain attentive to macro-economic and geopolitical developments as well as volatility in raw materials prices and currencies.
In this context, the Group will continue to benefit from its strong innovation drive in advanced materials, the integration of its bolt-on acquisitions in adhesives and a globally robust market environment for its intermediate chemical businesses. It will continue to implement its major manufacturing projects, as presented at its Capital Markets Day, for thiochemicals, specialty polyamides and Sartomer.
Lastly, the Group will continue its actions to pass on the rises in raw materials costs in its selling prices and the rollout of its operational excellence initiatives to partly offset the impact of inflation on its fixed costs.
For 2018, on the back of the first half and assuming that the current macro-economic environment remains unchanged, Arkema now expects a mid-single digit* EBITDA growth compared to the excellent performance already achieved in 2017.
*Of around 5%.
|6 November 2018||Publication of third-quarter 2018 results|