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Investing.com -- Arkema (EPA:AKE) stock rises 1.5% after the specialty chemicals company reported second-quarter results that showed mixed performance across its business segments, despite lowering its full-year outlook.
The French chemical manufacturer posted second-quarter sales of €2,395 million, slightly below analyst estimates of €2,403 million, representing an organic decline of 3.8%. The decrease was attributed to lower volumes (-1.3%) and reduced pricing (-2.5%), with currency effects further impacting sales by -3.3%.
Adjusted EBITDA came in at €364 million, 1% above consensus expectations but still down 19% compared to the same period last year. EBITDA margins contracted by 260 basis points year-over-year, reflecting ongoing challenges in the operating environment.
The company’s Advanced Materials segment was a bright spot, with adjusted EBITDA of €177 million exceeding analyst estimates of €173 million. This segment saw organic sales growth of 3.3%, driven by a 5.7% increase in volumes, though prices declined by 2.4%.
In contrast, the Coating Solutions segment underperformed with adjusted EBITDA of €53 million, below consensus expectations of €62 million. This division experienced a 9.7% organic sales decline, with volumes down 6.6% and prices falling 3.1%.
Arkema has revised its full-year EBITDA guidance downward to €1.3-1.4 billion from its previous outlook of "at least equal to last year’s at constant exchange rate." The company also reduced its cash flow forecast to €300-400 million from nearly €600 million previously.
Despite these challenges, the company maintained a solid financial position with second-quarter operating cash flow of €262 million and free cash flow of €91 million. Net debt stood at €3,580 million, representing a debt-to-EBITDA ratio of 2.5x.
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