Arkema expects to record a €40 million-50 million hit to Q1 earnings as a result of the coronavirus pandemic, the CEO of the France-based producer said on Thursday. From the €20 million impact on EBITDA the company had projected for Jan-Feb 2020, Arkema’s CEO estimate is a significant increase.
The estimates for impact in the first two months of the year were correct, Arkema’s CEO Thierry Le Henaff said. However, the substantially larger figure for the quarter as a whole is based on the westward spread of the outbreak.
Arkema's EBITDA stood at €295 million in Q4 2019; in Q1 2019, it came in at €370 million. On 6 May, Arkema is due to release Q1 results.
Besides prioritisation of capital expenditure levels that could see investments reduced or postponed, Arkema has taken other actions to help absorb the impact of the crisis including tighter controls on operational spending and strict monitoring of working capital.
