Arkema says its net earnings and operating Ebitda decreased 33.8% and 12.5% in the first quarter of 2012, to €100 million and €253 million compared with €151 million and €289 million in the first quarter of 2011, respectively. Sales, however, increased 14% year over year, to €1.62 billion in the first quarter of 2012, mainly reflecting the acquisition of specialty resins assets from Total and alcoxylates assets from Seppic, the company says. Arkema says that sales volumes decreased by 5% in the first quarter of 2012, and prices remained stable overall compared with the first quarter of 2011 even though a part of the sharp rise in raw materials was passed on in higher selling prices.
Arkema's first-quarter 2012 results are the second-best performance by the company in a first quarter. The results "confirm the recovery of demand following the destocking seen in the second half of 2011, even though not at the same level as at the beginning of 2011 when particularly favorable market conditions prevailed," says Thierry Le Hénaff, CEO and chairman of Arkema. Despite uncertainty in the economic environment, Arkema's performance was driven by the "ongoing growth in emerging countries and as many opportunities as ever in the major trends related to sustainable development, in particular new energies, lighter vehicles, and bio-sourced materials," Le Hénaff says.
Sales of the industrial chemicals segment increased 14% year over year, to €1.08 billion in the first quarter of 2012. Ebitda of the industrial chemicals segment decreased 25% in first-quarter 2012, to €170 million compared with €227 million in the first quarter of 2011, Arkema says. Sales and Ebitda of Arkema's performance products segment went up 13% and 38% in the first quarter of 2012, to €538 million and €102 million compared with €472 million and €74 million in the same quarter of the previous year, respectively. The Ebitda margin of Arkema's performance products segment in the first quarter of 2012 was 19.1%, which is the highest ever for the business in a first quarter, the company says.
Arkema is confident in its ability to perform strongly throughout 2012 and to achieve its long-term targets of €8 billion in sales and €1.25 billion in Ebitda by 2016. The main priorities of the company in the coming months are "the integration of Chinese companies Hipro and Casda, the ongoing construction projects in Asia in thiochemicals, fluorochemicals, and coating resins, and the closing of the vinyl activities divestment project," Arkema says. Market conditions are expected to remain the same in the second quarter of 2012, in which Arkema forecasts higher Ebitda than in the first quarter of 2011. Prices will also increase as the remaining raw material cost rises pass through fully in second-quarter 2012, Arkema says.