...May 15, 2023 Arkema's first quarter results are in line with our expectations, and we anticipate volumes contraction to persist in the second quarter. Arkema's first-quarter sales of 2.5 billion were down by 12.6% year-on-year mainly driven by lower volumes affected by weak demand in Europe, a slowdown in construction in the U.S., and temporary destocking in batteries in China. Overall, the company increased its prices in its adhesive solutions and advanced materials segments given high inflation and new high value-added developments linked to sustainable megatrends. Margins declined from the exceptionally high levels reported last year (to 14.5% from 21.4%) due to the weaker market environment in PVDF and upstream acrylics. We expect improved operating performance in the second half of the year and believe that Arkema will maintain comfortable rating headroom. Driven by our expectations of improved market conditions with lower destocking and expansion projects coming online (contributing...
