Third quarter 2017 results
- Sales for third quarter 2017 up 10% year on year to €2,019 million
- Volumes for the High Performance Materials division up 8%, driven by developments in adhesives, lighter materials and new energies
- EBITDA up 17% on Q3 2016 at €355 million, supported by strong rises for all three of the Group’s divisions
- EBITDA margin up to 17.6% (from 16.5% in Q3 2016)
- Adjusted net income up 44% to €158 million, representing €2.08 per share
- Free cash flow of +€274 million, enabling the Group to significantly reduce its net debt to €1,194 million (from €1,471 million at 30 June 2017)
- Proposed acquisition of XL Brands in the United States supporting the strategy to expand in adhesives
Arkema’s Board of Directors met on 8 November 2017 to review the Group's consolidated financial statements for the third quarter of 2017. At the close of the meeting, Chairman and CEO Thierry Le Hénaff stated:
“Just a few months after our Capital Markets Days – when we confirmed the Group’s growth strategy for adhesives and advanced materials and announced our financial targets for 2023 – we have released excellent results for the third quarter of 2017. Two factors sum up this strong quarterly performance: a 44% increase in adjusted net income and record-high cash generation.
These results once again demonstrate the rationale of the Group’s strategy and its successful implementation by our teams. The drivers of our strong growth figures for this quarter include our recent industrial investments in Asia and France and our best-in-class, cutting-edge R&D projects for batteries, solar power, water treatment, adhesives, and lightweight and bio-based materials.
Following our successive acquisitions of Den Braven and CMP, as part of our strategy to continue to expand Bostik’s business, we recently announced that we intend to acquire XL Brands, which specializes in flooring adhesives in the United States.
All of the above factors confirm the Group’s strong positioning in specialty activities, which are at the heart of its development strategy.”
The global macro-economic environment is expected to remain volatile in the fourth quarter of 2017, with contrasting trends across the Group's end-markets and geographic regions, higher raw materials prices than last year and a stronger euro against the US dollar.
Against this backdrop, Arkema’s business will continue to benefit from the expansion of Bostik, with the integration of Den Braven and new high value-added applications in advanced materials, notably related to major sustainability trends. Improvement of Fluorogases should remain limited in the fourth quarter compared to the previous year given this activity's seasonality. The Group will also pursue its actions to ensure that the high costs of certain raw materials are reflected in its selling prices. Lastly, it will continue implementing its operational excellence initiatives to offset part of fixed costs inflation.
In view of the above factors and the traditional seasonality of the Group's business towards the end of the year, and based on the results achieved in the first nine months of 2017, the Group now targets for the full year an EBITDA in the upper end of the €1,310 million to €1,350 million range announced in August.
|22 February 2018||Full-year 2017 results|