Arkema's sales in the Q2 2008 rose 1.3% to €1,509 mln, against €1,489 mln in Q2 2008. Excluding the impact of exchange rates (-4.6%) and variations to the scope of business (-0.5%), sales rose by 6.4%, sustained primarily by price increases (+5.4%) implemented in the Industrial Chemicals and Performance Products segments, while volumes also improved slightly (+1.0%). EBITDA was up 5.3% to €158 mln against €150 mln in the Q2 2007.
As far as Arkema's Vinyl segment is concerned, Vinyl Products sales rose by 5.1% to €395 mln, against €376 mln in the Q2-2007, underpinned primarily by strong demand for caustic soda and sound volumes for PVC in Europe albeit with strong variations from one country to another. The segment's EBITDA stood at €14 mln (against €33 mln in Q2-2007), with the ongoing and sharp hike of ethylene and natural gas prices weighing heavily on the level of unit margins. The productivity drive continued over this period. Vinyl Products will continue to be affected by the sharp increase of ethylene.
The economic environment in the 2nd half of the year should remain challenging and uncertain, characterized, in particular, by high and volatile raw material and energy costs and a weak US dollar versus the euro. In this context, Arkema will focus on increasing its prices, while continuing to implement self-help initiatives. Self-help initiatives already underway, the impact of which has been estimated for 2008 at €80 million, will underpin EBITDA growth. Furthermore, Arkema will remain attentive to the evolution of the economic environment, and continue to take the necessary measures to adapt accordingly. Arkema's 2008 target of 10% EBITDA margin is on course. Based on the quality of ongoing projects, the results of the Industrial Chemicals and Performance Products segments should support this improvement in the results. Vinyl Products will continue to be affected by the sharp increase of ethylene.
08-Aug-08 
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