SOLVAY GROUP - 2ND QUARTER & 1ST HALF YEAR 2015 BUSINESS REVIEW

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Brussels, July 29th, 2015

Q2 highlights

- Group net sales were € 2,675 m, up 4.2% yoy, with the positive conversion impact of foreign exchange rate fluctuations of 9.1% more than offsetting lower volumes and prices, (3.6)% and (1.3)% respectively, 

- REBITDA totaled € 500 m, up 8.1% yoy. Conversion forex and pricing power across all operating segments, for € 55 m and € 57 m respectively, more than offset lower volumes and increased fixed cost impacts from new sites. The REBITDA margin widened to 19% of net sales, up 66 basis points.

. Advanced Formulations at € 100 m, down (12)% yoy, as the persistent and substantial decline of demand in the oil & gas industry impacted Novecare, and was only partly compensated by higher sales volumes at Aroma Performance;

. Advanced Materials at € 214 m, up 18% yoy, underpinned by robust volume growth throughout the segment, and particularly at Specialty Polymers;

. Performance Chemicals at € 185 m, up 9% yoy, with strong net pricing benefits at Soda Ash and Peroxides thanks to excellence initiatives, more than offsetting sustained destocking in Acetow's market;

. Functional Polymers at € 45 m, up 23% yoy, supported by excellence programs;

. Corporate and Business Services' net costs were € (43) m, € (6) m more than last year, as a result of a different phasing of costs in 2014, which were back-end loaded.

- IFRS Net income Solvay share was € 125 m, versus € (313) m in 2014. Adjusted Net Income Solvay share came at € 143 m versus € (292) m in Q2 2014. The 2014 figures had been impacted by impairments on the discontinued European Chlorovinyls business.xx

- Free Cash Flow amounted to € 167 m. Net debt increased to € 1,608 m from € 1,417 m at the end of the first quarter, mainly as a result of the final dividend payments.

H1 highlights

- Group net sales totaled € 5,322 m, up 5.3% yoy, mainly as a result of conversion forex for 8.8% more than offsetting (2.7)% lower volumes and (0.6)% lower prices.

- REBITDA amounted to € 1,002 m, up 10% yoy, mainly thanks to the 11% impact of conversion forex, while weaker volumes for (8.5)% were offset by pricing power for 9.9%, with a net impact of € 90 m. Margins widened to 19% of net sales, up 81 basis points.

- IFRS Net income Solvay share stood at € 265 m versus € (225) m in 2014, whereas Adjusted Net Income Solvay share came at € 301 m versus € (186) m in H1 2014.

- Free Cash Flow was € (177) m. Net debt increased to € 1,608 m from € 778 m at year end 2014.

Quote of the CEO
The breadth of our portfolio and our excellence initiatives contributed to continued progress in operational results, despite persistent poor demand in the oil & gas and acetate tow markets. Many of our businesses delivered robust performance, driven by innovation, particularly at Advanced Materials, as well as pricing power across the board. We continued to benefit from favorable foreign exchange rates. We pressed ahead with our portfolio upgrade to increase our growth, returns and resilience, having sold our refrigerant business and created the INOVYN joint venture.

Outlook
Solvay remains confident it will generate solid REBITDA growth in 2015, despite the expectation of continued uncertainties in various markets.

Forenote

All historic data are restated for comparison purposes, unless otherwise indicated. In particular, 2014 Q2 and H1 data are restated for the discontinuation of Eco Services and the re-allocation of Corporate shared services costs.

Besides IFRS accounts, Solvay also presents Adjusted Income Statement performance indicators that exclude non-cash Purchase Price Allocation (PPA) accounting impacts related to the Rhodia acquisition.

To read the presentation in PDF

Follow us on twitter @SolvayGroup

As an international chemical group, SOLVAY assists industries in finding and implementing ever more responsible and value-creating solutions. Solvay generates 90% of its net sales in activities where it is among the world's top three players. It serves many markets, varying from energy and the environment to automotive and aeronautics or electricity and electronics, with one goal: to raise the performance of its clients and improve society's quality of life. The group is headquartered in Brussels, employs about 26,000 people in 52 countries and generated 10.2 billion euros in net sales in 2014. Solvay SA (SOLB.BE) is listed on EURONEXT Brussels and EURONEXT Paris (Bloomberg: SOLB:BB - Reuters: SOLB.BR).

Lamia Narcisse
Media Relations
+33 1 53 56 59 62
Caroline Jacobs
Media Relations
+32 2 264 1530
Maria Alcon
Investor Relations
+32 2 264 1984
Geoffroy Raskin
Investor Relations
+32 2 264 1540
Bisser Alexandrov
Investor Relations
+32 2 264 2142



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Solvay S.A. via Globenewswire

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Posted In: Press Releases
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