Arkema Sales Jump Almost 30% in 2021 Third Quarter
Sales in the Adhesive Solutions segment were up 10.1% in the third quarter of 2021 compared to the third quarter of 2020.
Supported by accelerating demand for high-performance materials in an environment marked by strong inflation of raw materials and supply chain disruptions, Arkema recently reported group sales of €2.4 billion (approximately $2.8 billion) in the third quarter, an increase of nearly 30% (at constant scope and currency) vs. 2020 and approximately 17% compared to 2019. Despite shortages in an increasing number of raw materials, particularly in Adhesive Solutions, and certain logistics constraints in Asia and the U.S., volumes rose by 5.3%.
Arkema reports that growth remained strong in the battery, consumer goods, electronics, and transportation markets, although a slowdown was observed in the automotive sector. The oil and gas and paper markets remained lower compared to 2020.
“We can be proud of Arkema’s strong financial performance, achieved in a complex and demanding operating environment,” said Thierry Le Hénaff, chairman and CEO. “I would like to particularly thank our teams, as these results reflect both their high quality work and their faultless level of commitment.
“It is our whole sustainable growth strategy which really stands out. Our Specialty Materials are fully benefiting from their positioning on societal megatrends. We are seeing our developments accelerate structurally across many high-stake markets, such as batteries, 3D printing, eco-friendly paint, sports, home comfort and electronics.
“Moreover, we are actively continuing the roll-out of our 2024 strategy and the refocusing of the Group toward Specialty Materials. Thus, by acquiring Ashland’s performance adhesives business, we will strengthen our Adhesive Solutions segment with this first-class activity, which through its technological know-how, will enable Bostik to accelerate its growth. The divestment of our epoxides business to Cargill is also in line with our pro-active management of the portfolio. These positive developments make us truly confident about the future. In this fast-changing world, our cutting-edge innovation in high-performance materials for sustainable solutions, our current and prospective major industrial projects, and our bolt-on acquisition policy provide us with many growth opportunities.”
Sales in the Adhesive Solutions segment totaled €568 million (~ $651.2 million) in the 2021 third quarter, up 10.1% compared to the third quarter of 2020. In a context of robust demand in the construction market and in high-performance industrial applications, volumes were impacted by difficulties to source raw materials and logistics constraints, particularly in the U.S. and in Asia. They fell 2.3% compared to the high comparison base of the 2020 third quarter, which was supported by a strong rebound in the construction market.
Additional details are available at www.arkema.com.
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