November 2006 Additives for Polymers

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FINANCIALS

Arkema’s second quarter 2006 sales up 3% During the second quarter of 2006, sales for Arkema rose to €1.531 billion, up 3% compared to 2Q 2005. However, higher income taxes in the second quarter held net profit at €28 million, 15% down year-on-year.

The Performance Products sector (which includes the company’s polymer additives lines) performed particularly well in 2Q 2006, with sales up 5.6% from €496 million to €524 million driven, in particular, by good market conditions, ongoing price increases and new developments. The sec-tor accounts for 34% of Arkema’s sales while Industrial Chemicals represents 43% and Vinyl Products 23%. EBITDA for the sector rose from €36 million to €52 million over the three-month period, benefiting from price increases and the contribution of new units, Arkema says. Margin recovery initiatives in the additives business also contributed to the improvement, although the ongoing policy of price increases has resulted in a slight decrease in additives sales volumes.

For the six months to the end of June 2006, Arkema’s sales were up 5.8% compared to the same period of 2005, totalling €3.076 billion, while sales of performance products were up 7.7% to €1.045 billion. The improved sales resulted mainly from price increases in all three segments (+2.3%), higher volumes (+2.1%) and a positive foreign currency effect (+1.6%) related mainly to the appreciation of the dollar against the euro. Despite lower income in the second quarter, Arkema posted a net profit of €37 million for the first half of 2006 compared with a €36 million loss in 1H 2005.

Contact: Arkema, 4-8, cours Michelet, La Défense 10, 92091 Paris La Défense Cedex, France; tel: +33-1-4900-8080; fax: +33-1-4900-8396; URL: www.arkemagroup.com

Mixed results for Chemtura Chemtura Corp reported sales of US$1.016 bil-lion for the second quarter of 2006, up 69% from $605 million in 2Q 2005. However, on a pro

forma basis (calculated as if the Crompton/Great Lakes merger had taken place on 1 January 2005 rather than 1 July 2005), sales fell 7% due largely to divestments and lower volumes. Earnings from continuing operations for the 2006 quarter were $2.5 million, which includes various costs and losses totalling $74.5 million. Comparable earnings from 2Q 2005 were $10.2 million. For the first six months of 2006, sales were up 62% to $1.932 billion (but down 8% on a pro forma basis), while earnings from continuing operations fell 45% to $15.7 million as a result of various antitrust costs and other charges.

Sales by the Plastics Additives segment, Chemtura’s largest segment, were $407.1 mil-lion in 2Q 2006 and $806.7 million for the half year. For the comparable periods in 2005, sales were $210 million and $418.3 million, respec-tively. However, on a pro forma basis, sales were down from $423.2 million in 2Q 2005 and $851 million in 1H 2005. Operating profit for the segment was $40.7 million in 2Q 2006 and $72.9 million in 1H 2006, compared to $32.3 million and $75.6 million on a pro forma basis for the same periods in 2005.

According to Robert L. Wood, president, chair-man and CEO, actions taken by Chemtura have driven successive profit and cash flow improve-ment in the first and second quarters. Some business platforms are exceeding expectations, but a few are still underperforming: “We will continue to grow profitability in our stronger businesses and are vigorously addressing the challenges in underperforming units,” he says.

Contact: Chemtura Corp, 199 Benson Rd, Middlebury, CT 06749, USA; tel: +1-203-573-2220; fax: +1-203-573-2800; URL: www.chem-tura.com

NEWS AND VIEWS

AXA Private Equity acquires majority share in Eliokem French speciality chemical company Eliokem has been bought from US private equity firm Littlejohn & Co LLC by its management team and AXA Private Equity. Eliokem’s management

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