Arkema 2Q Disappoints

PARIS--French chemicals specialist Arkema SA (AKE.FR) Friday reported a fall in revenue and profit in the second quarter of the year and warned it will take longer to achieve its medium-term targets.

Arkema, which sells over 40% of its products in Europe, said second quarter revenue fell 6.7% on year to EUR1.52 billion partly on a fall in prices of fluorogases, which are used in refrigeration and air conditioning. The weaker dollar also reduced the value of sales in the U.S., where Arkema sells around 34% of its products.

Earnings before interest, tax, depreciation and amortization dropped to EUR206 million--13.6% of revenue--in the second quarter from EUR273 million a year earlier and net profit fell 58% to EUR47 million, the company said.

"The performance of second quarter is below our expectations," chief executive Thierry Le Henaff said in a statement.

Originally a unit of oil major Total SA (TOT), Arkema employs around 14,000 people and aims to expand out of its French market to become one of the global leaders in specialty chemicals.

The company eased its medium-term ambitions Friday.

Mr. Le Henaff said the company's target of EUR8 billion in sales and Ebitda representing 16% of sales will be met in 2017, instead of 2016 previously. The company also said it will tighten its control on costs beyond current plans to make an extra EUR50 million in savings over the next three years.

This year, the company expects the economic environment to remain similar to the second quarter. Ebitda in 2014 should be close to EUR800 million, Arkema said.

-Write to William Horobin at [e-mail]

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