PARIS--French chemicals specialist Arkema SA (AKE.FR) Friday
reported a fall in revenue and profit in the second quarter of the
year and warned it will take longer to achieve its medium-term
targets.
Arkema, which sells over 40% of its products in Europe, said
second quarter revenue fell 6.7% on year to EUR1.52 billion partly
on a fall in prices of fluorogases, which are used in refrigeration
and air conditioning. The weaker dollar also reduced the value of
sales in the U.S., where Arkema sells around 34% of its
products.
Earnings before interest, tax, depreciation and amortization
dropped to EUR206 million--13.6% of revenue--in the second quarter
from EUR273 million a year earlier and net profit fell 58% to EUR47
million, the company said.
"The performance of second quarter is below our expectations,"
chief executive Thierry Le Henaff said in a statement.
Originally a unit of oil major Total SA (TOT), Arkema employs
around 14,000 people and aims to expand out of its French market to
become one of the global leaders in specialty chemicals.
The company eased its medium-term ambitions Friday.
Mr. Le Henaff said the company's target of EUR8 billion in sales
and Ebitda representing 16% of sales will be met in 2017, instead
of 2016 previously. The company also said it will tighten its
control on costs beyond current plans to make an extra EUR50
million in savings over the next three years.
This year, the company expects the economic environment to
remain similar to the second quarter. Ebitda in 2014 should be
close to EUR800 million, Arkema said.
-Write to William Horobin at william.horobin@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires