Arkema publishes 2007 results sharply rising

Arkema publishes 2007 results sharply rising - particularly through its restructuring efforts and its ability to resist the rise in raw materials and energy - and confirms its objectives.

The former subsidiary of chemical Total always aims for 2008 EBITDA margin of 10%, "perfectly in line" with its objective of an EBITDA margin of 12% for 2010.

Arkema will for the first time pay a dividend, which he set at 0.75 euros for 2007.

The group last year recorded a net profit, group share, from 122 million euros (multiplied by 2.7), a recurring net profit of 186 million (+61.7%), EBITDA of 518 million (+26.0%) and turnover (already published) to 5,675 million (+0.2%).

The EBITDA margin was 9.1% compared to 7.3% in 2006 and 6.2% in 2005.

According to the Reuters Estimates consensus on 4 March, analysts on average were expecting a net profit of 125.7 million euros and an EBITDA of 511 million.

"These very good results have been recorded in an economic environment with particular weakness in the US dollar against the euro. They are the result of many actions internal growth and productivity that we have implemented in recent years," "said CEO Thierry Le Hénaff, quoted in a news release.

"Arkema intends to continue this process of transformation. We confirm our 2008 target to reach a margin of 10% EBITDA, and then bring the EBITDA margin of 12% in 2010 (...). In the future, it is intended to maintain the payment of a dividend, the amount of which will be determined by the evolution of the group's results, "he added.

The EBITDA margin in the chemical industry has reached 11.4% (vs. 10.7% in 2006), that of performance products 10.7% (vs. 8.7%) and that of vinyl products 6.3% (vs. 2.8%).

PURSUIT OF TRANSFORMATION

The rise in EBITDA reflected in the group "the launch of new lines of high value-added products with dégoulottages (remodelages of industrial Ed) focused in Europe and North America and new production capacity in Asia" which have helped to increase the EBITDA of 26 million euros.

Arkema has also continued to reduce its fixed costs "through plans to restructure and strict management of expenses" that have led to a gain in EBITDA of 57 million euros.

"In addition, price increases have erased the impact of increased costs of raw materials and energy."

In 2008, Arkema "intends to pursue its transformation very active around its three strategic axes focused growth, improving competitiveness and enhancing its portfolio."

The level of investment is expected to fall in 2008 to about 340 million euros including the late investments related to the consolidation plan of Chlorochimie, amounting to 25 million.

The non-recurring income amounted to -72 million euros in 2007 against -92 million in 2006. They mainly include charges of 94 million related to restructuring plans announced during the year.

Investments this year have reached 325 million euros, of which 44 million related to the consolidation plan of the chlorochemicals.

The consolidated net debt stood at 459 million euros at end-December 2007. Taking into account non-recurring items pre spin-off remaining to be disbursed end 2007 (122 million euros), the ratio of net debt to equity stood at 30% (compared with 28% at the end of 2006), in line with Arkema the goal to maintain this ratio to below 40%.

Arkema announced in another release doubling the production capacity of its German site hydrogen peroxide Leuna for up to 80,000 tonnes per year by mid-2010. The investment amounts to 40 million euros.