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Arkema 2019 Results

In 2019, Arkema achieved a high-level financial performance driven by specialty businesses in an increasingly challenging economic context.

The Group generated a record amount of cash whilst maintaining an ambitious level of investments for its future growth.

  • 8.7 billion in sales, close to last year’s level (€8.8 billion);
  • €1,457 million EBITDA, comparable (-1.2%) with the 2018 record level, and EBITDA margin of 16.7%, stable at a high level;
  • 4Q EBITDA up 3% year on year to €295 million;
  • Adjusted net income of €625 million, representing €8.20 per share;
  • Strong increase in free cash flow to €667 million, representing an excellent EBITDA to cash conversion rate of 52% (38% in 2018);
  • Net debt (excluding the hybrid bonds) under control at €1.6 billion, or 1.1x 2019 EBITDA;
  • Further increase in the proposed dividend, up 8% to €2.70 per share, reflecting the company’s strong confidence and potential in its long-term strategy

Arkema’s Board of Directors met on Feb. 26, 2020, to approve the Group’s consolidated financial statements for 2019.

“After a record year in 2018, we experienced a more difficult economic climate in 2019, marked by downturns in some markets, such as the automotive and electronics sectors, as well as a general lack of visibility,” Chairman and CEO Thierry Le Hénaff said. “In this context, the Group’s performance remained at a high level and its resilience compared favorably with the sector average. I would like to sincerely thank all our employees for their efforts and their ongoing commitment.

“Beyond those very solid financial results, the Group continued its strategy of strengthening its specialty businesses by carrying out high-quality bolt-on acquisitions and capacity increases for high value-added products and stepping up its innovation drive in High-Performance Materials. The Group has also recently defined an ambitious climate plan to contain global warming well below 2°C.”

 

REFS

Published on coatingsworld.com

Arkema Announces Full-year 2019 Results

 

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REMARKS

Good performance and good results, especially in the context of the economic situation for the chemical industry in 2019.

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