PARIS (Thomson Financial) - Chemicals manufacturer Arkema is planning to
carry out acquisitions totaling 400 million to 500 million euros over the next
three years, chief executive Thierry Le Henaff said.
In an interview with weekly Le Journal des Finances, Le Henaff specified
that Arkema will be looking at companies with sales ranging from several tens of
million up to 200 million euros.
"Given the current weakness of the dollar, an acquisition in the United
States would make sense," he said, noting that 40 percent of Arkema's sales are
generated in the dollar zone.
The CEO said top-line growth will account for half of the 80 million euros
improvement in EBITDA the company is targeting for 2008, with organic and
external growth making an equal contribution.
This represents a shift away from cost-cutting, which two years ago
accounted for 80 percent of its margin gains, he said.
Regarding Arkema's vinyl products business, which saw its EBITDA margin fall
by 3.1 points in the first quarter, Le Henaff said the company plans to reduce
the division's contribution to group sales to 18 percent in 2010 compared to 25
percent currently, while raising its EBITDA margin to 9 percent from 7 percent
over the same period.
Following Arkema's recent decision to offer a first-ever dividend since it
was spun off from oil giant Total in May 2006, Le Henaff said the company plans
to continue offering a dividend going forward.
Arkema shares rose sharply in Paris trading on Wednesday after the group
announced a greater-than-expected 64 percent leap in first quarter net profit,
thanks to improving margins at its industrial chemicals and performance products
divisions.
The company maintained its 10 percent EBITDA margin target for 2008, up from
9.1 percent last year, based on the expected 80 million euros improvement in
EBITDA.
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