Coatings World staff05.06.20
Arkema released its 1Q 2020 results, saying they are in line with expectations, in a first-quarter marked by the coronavirus outbreak in Asia and its spread to Europe in March.
Stripping out the coronavirus impact, the Group’s performance, in a less favorable economic environment than in 2019, was supported by the resilience of Specialty Materials and, in particular, strong growth of the Adhesive Solutions segment.
Moreover, the balance sheet and liquidity levels remain very solid.
Stripping out the coronavirus impact, the Group’s performance, in a less favorable economic environment than in 2019, was supported by the resilience of Specialty Materials and, in particular, strong growth of the Adhesive Solutions segment.
Moreover, the balance sheet and liquidity levels remain very solid.
- Sales at €2.1 billion, down 5.7 percent year on year, marked by the impact of COVID-19;
- EBITDA of €300 million, down 19 percent on first-quarter 2019, mainly impacted by the effects of COVID-19 which amounted to around €45 million;
- EBITDA stable in Specialty Materials, excluding the impact of COVID-19,
- supported by the significant increase in Adhesive Solutions, with an EBITDA increase of 11 percent marked by the decline in the transportation, oil & gas, and electronics markets, overshadowing the growth in the packaging and nutrition markets;
- Intermediates segment mainly impacted by COVID-19 and less favorable market conditions in Fluorogases;
- Adjusted net income of €100 million, representing €1.31 per share;
- Close-to-balance free cash flow, of negative €38 million, reflecting the seasonal increase in working capital;
- Net debt tightly controlled at €2,481 million (including €1 billion in hybrid bonds), up €150 million on Dec. 31, 2019 (€2,331 million including hybrid bonds), of which over half relating to the acquisition of the Danish company LIP in adhesives;
- Liquidity levels at €1.5 billion at end-March, confirming the Group’s financial solidity;
- €100 million reduction in capital expenditure compared to the level originally planned for 2020, and fixed costs to decline by €50 million in 2020 versus 2019, to adapt to the COVID-19 context
