Arkema Announces 1Q 2016 Results

The Board of Directors of Arkema met on May 10, 2016 to review the Group’s consolidated accounts for the first quarter of 2016.
 
In the first quarter of 2016, sales stood at €1,893 million, slightly up on 1st quarter 2015 (€1,871 million). The +4.9% business scope effect primarily reflected Bostik’s contribution in January and the divestment of Sunclear. In a global economic environment that remained contrasted, volumes grew by 2.5%, supported by innovation in Technical Polymers, developments in adhesives, the thiochemicals plant in Malaysia, and growth in acrylic downstream.
 
The price effect, at -5.5%, resulted from the acrylics cycle and the effect on sales prices of lower raw material costs. The translation effect was limited to -0.8%.
 
At €302 million, EBITDA reached a record high for a first quarter. It rose by +27.4% compared to first quarter 2015 (€237 million), largely supported by several structural drivers such as the integration and ramp-up of Bostik, which again achieved very good progress, the development of the thiochemicals platform in Malaysia, and the benefit of innovation. Some lower raw material costs and operational excellence efforts also contributed to this performance.
 
EBITDA margin improved significantly to 16.0% against 12.7% in 1st quarter 2015, reflecting the growing share of higher added value activities and the improvement in Bostik’s margin to some 13%.
 
 “Following a strong increase in its performance in 2015, the Group has continued its very positive development,” chairman and CEO Thierry Le Hénaff stated. “In an environment which remains volatile and contrasted, we started the year very well with good volume growth and results significantly up including a high EBITDA margin at 16%. This performance illustrates our internal momentum sustained by transforming investments which continue to ramp up, like Bostik integration and the development of thiochemicals in Malaysia. The successes of our innovation in new materials, as well as our operational excellence drive also continue to bear fruit.”
 
“Arkema thus fully benefits from its strategy to expand in more resilient businesses and high added value niches along with its geographic presence now very well balanced,” Le Hénaff added. “While the Group remains cautious overall on future developments of the macro-economic environment which continues to be characterized by many uncertainties, all these elements reinforce our confidence in our ability to achieve a good 2016.”
 
In line with the significant improvement in EBITDA, the recurring operating income stood at €191 million against €133 million in first quarter 2015. Net income Group share was significantly up at €98 million against €42 million in first quarter 2015.