{"id":22024,"date":"2020-08-04T08:31:18","date_gmt":"2020-08-04T06:31:18","guid":{"rendered":"https:\/\/php8.plastv.de\/?p=22024"},"modified":"2020-07-30T10:32:27","modified_gmt":"2020-07-30T08:32:27","slug":"second-quarter-2020-results","status":"publish","type":"post","link":"https:\/\/plas.tv\/?p=22024","title":{"rendered":"Second-quarter 2020 results"},"content":{"rendered":"<div class=\"componenthead\">\n<div class=\"news-category \"><\/div>\n<div class=\"summary\">Arkema confirms its resilience with a robust financial performance and high cash flow generation in the context of a global economy strongly impacted by the effects of the Covid-19 pandemic.<\/div>\n<\/div>\n<div class=\"paragraphs\">\n<div class=\"paragraph paragraph--with1cols paragraph-number-1\">\n<div class=\"paragraph-column paragraph-column-1 o  o  o paragraph-column-1-is-1\">\n<div class=\"paragraph-column-inner\">\n<div class=\"paragraph-column-element\">\n<div class=\"text\">\n<ul>\n<li><strong>\u20ac1.9 billion <\/strong>in<strong> sales, <\/strong>down 15.6% year on year (-10.7% in H1\u201920):<\/li>\n<\/ul>\n<p>\u2022 significant slowdown in the construction, transportation and industrial sectors, overshadowing good demand in the nutrition, packaging and hygiene markets<\/p>\n<p>\u2022 sequential improvement in June, supported by the progress in the construction market in Europe and the US and solid sales in China<\/p>\n<ul>\n<li><strong>\u20ac286 million <\/strong>in <strong>EBITDA<\/strong> (\u20ac407 million in Q2\u201919) and <strong>EBITDA margin <\/strong>of<strong>15.0%<\/strong>\u00a0\u2013 a resilient performance in view of the context:<\/li>\n<\/ul>\n<p>\u2022 solid performance of Advanced Materials, with an EBITDA margin of 20%<\/p>\n<p>\u2022 sharp rebound for Bostik in June<\/p>\n<p>\u2022 benefits of rapidly implemented interim fixed cost reduction initiatives<\/p>\n<ul>\n<li><strong>Adjusted net income<\/strong> of <strong>\u20ac90 million<\/strong> (\u20ac192 million in Q2\u201919), representing \u20ac1.18 per share<\/li>\n<li>Excellent <strong>free cash flow<\/strong>, at <strong>\u20ac288 million<\/strong> (\u20ac90 million in Q2\u201919), reflecting strict management of working capital and capital expenditure<\/li>\n<li><strong>Net debt<\/strong> down sharply relative to end-March 2020 at <strong>\u20ac2,134 million<\/strong> (of which \u20ac1 billion in hybrid bonds), including the \u20ac168 million dividend payment and \u20ac246 million in net proceeds from the divestment of the Functional Polyolefins business<\/li>\n<li>Further progress in the strategy of refocusing on Specialty Materials, with the finalization of the divestment of the Functional Polyolefins business to the South-Korea based corporation SK, and the proposed acquisition of Fixatti in Adhesive Solutions announced on 20 July<\/li>\n<\/ul>\n<\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"paragraph paragraph--with1cols paragraph-number-2\">\n<div class=\"paragraph-column paragraph-column-1 o  o  o paragraph-column-1-is-1\">\n<div class=\"paragraph-column-inner\">\n<div class=\"paragraph-column-element\">\n<figure class=\"image  o  o right\"><img decoding=\"async\" title=\"Thierry Le H\u00e9naff, Arkema Chairman and Chief Executive Officer - \u00a9 Bruno Mazodier\" src=\"https:\/\/www.arkema.com\/export\/shared\/.content\/media\/images\/corporate\/executive-committee\/thierry-le-henaff.jpg_1910521025.jpg\" alt=\"Arkema Chairman and Chief Executive Officer\" \/><\/figure>\n<div class=\"text\">\n<p>Following Arkema&#8217;s Board of Directors\u2019 meeting held on 29 July 2020 to approve the Group&#8217;s consolidated financial statements for the first half of 2020, Chairman and CEO Thierry Le H\u00e9naff said:<\/p>\n<p>&nbsp;<\/p>\n<p><em>\u201cThe second quarter was marked by the context of Covid-19 and the lockdown measures imposed in many countries. Arkema\u2019s sales were clearly impacted by this situation, but the decline was contained thanks to the Group\u2019s worldwide positioning and the diversity of its end markets. The Group demonstrated its resilience in this unprecedented context, thereby validating its strategy of refocusing its business portfolio toward specialties.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><em>I am very pleased with the mobilization and reactivity of the Group\u2019s employees throughout this period. Arkema\u2019s teams worked hard, focusing on both the short- and mid-term.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><em>For the short-term, we concentrated on the elements that are within our control, putting in place decisive initiatives to reduce costs and tightly control working capital and capital expenditure. This enabled us to deliver a robust financial performance in the second quarter and achieve a high level of cash generation despite the challenging operating environment. In the second half of the year, while expecting to see a gradual improvement in end markets, Arkema will continue its cost-saving and cash-generation efforts in an environment still marked by low visibility with regards to the evolution and effects of the pandemic.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><em>At the same time, the Group confirmed its determination to implement the roadmap announced at the Investor Day on 2 April. The finalization of the divestment of the Functional Polyolefins business in early June, Bostik\u2019s acquisition of Fixatti and the start of strategic reviews regarding the evolution of the portfolio in Intermediates marked the launch of the M&amp;A phase. Our organic growth ambitions have been supported by the partnership with Nutrien, the progress made in the construction of our bio-based polymer plant in Singapore despite the Covid-19 pandemic, and the acceleration of sustainable innovation projects in Specialty Materials\u201d. <\/em><\/p>\n<\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<div class=\"clear\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"paragraph paragraph--with1cols paragraph-number-3\">\n<div class=\"paragraph-column paragraph-column-1 o highlighted o  o paragraph-column-1-is-1\">\n<div class=\"paragraph-column-inner highlighted-inner\">\n<div class=\"paragraph-column-element\">\n<div class=\"subtitle\">\n<h3>Outlook for 2020<\/h3>\n<\/div>\n<div class=\"text\">\n<p>Based on the progressive lifting of lockdown measures in some important countries for the Group, Arkema expects that demand will continue to improve gradually in the second part of the year, while remaining below last year\u2019s level. The pace and strength of this improvement are still uncertain, dependent on the evolution of the pandemic, and will vary between end-markets and geographies. Arkema estimates at this stage that sales in the third quarter will decline by around 10% year-on-year at constant scope and currency, representing a clear improvement compared to the decline of around 20% recorded in the second quarter.<\/p>\n<p>&nbsp;<\/p>\n<p>In this context, Arkema will focus its efforts on the elements that are within its control, in particular costs, capital expenditure and working capital in order to maintain a strong level of liquidity. The Group thus confirms it is on track to reduce in 2020 its fixed costs by \u20ac50 million compared to 2019 and to reduce capital expenditure by \u20ac100 million compared to the level originally planned. Its innovation efforts in Specialty Materials will be preserved in order to meet its customers\u2019 numerous technological and sustainable development opportunities. Thanks to those initiatives, and on the back of its solid performance in the second quarter given the current environment, the Group remains very confident in its ability to deal with this unprecedented crisis, drawing also on its balanced geographic exposure, diversified end markets and strong balance sheet.<\/p>\n<p>&nbsp;<\/p>\n<p>Finally, Arkema will continue its acquisition strategy, the roll-out of its major organic growth projects, as well as its strategic review for Intermediates, in line with its ambition to become a pure Specialty Materials player by 2024.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p>&nbsp;<\/p>\n<p>Further details concerning the Group&#8217;s second-quarter 2020 results are provided in the &#8220;Second-quarter 2020 results&#8221; presentation and the Factsheet, both available on Arkema&#8217;s website at <a href=\"http:\/\/www.finance.arkema.com\">www.finance.arkema.com<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Arkema confirms its resilience with a robust financial performance and high cash flow generation in the context of a global economy strongly impacted&#8230;<\/p>\n","protected":false},"author":2,"featured_media":6884,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,16],"tags":[],"series":[],"class_list":["post-22024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-plas-tv-meldungen-auf-der-startseite-unterhalb-slider","category-plast-tv-textmeldungen"],"_links":{"self":[{"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/posts\/22024","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22024"}],"version-history":[{"count":1,"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/posts\/22024\/revisions"}],"predecessor-version":[{"id":22025,"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/posts\/22024\/revisions\/22025"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/media\/6884"}],"wp:attachment":[{"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22024"},{"taxonomy":"series","embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Fseries&post=22024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}