SOLVAY GROUP 1ST QUARTER 2016 FINANCIAL REPORT
(Thomson Reuters ONE) -
HIGHLIGHTS 1ST QUARTER 2016
Q1 2016 underlying results ([1])
* Net sales totaled ? 2.9 bn, down (6)%, with average prices (2)% linked to
partial pass-through of lower raw material costs in a deflationary
environment. Scope changes and foreign exchange impacts on conversion
decreased sales by (3)%. Volumes were stable overall, with growth in
Advanced Materials and Functional Polymers offset by a drop in other
segments.
* Underlying EBITDA grew 2% at ? 602 m, as pricing power boosted performance
by 10%, underpinned by Solvay's excellence programs and transactional
foreign exchange gains. The volume mix had a (3)% impact. The remaining (5)%
is caused by the ? 30 m one-off benefit recognized in the first quarter of
2015, linked to U.S. post-retirement benefits. The underlying EBITDA margin
widened to 21%, up 1.4 pp.
* Advanced Materials at ? 267 m, up 1.4% yoy, as growth in healthcare,
consumer goods and sustainable mobility applications more than offset
the impact of ongoing inventory adjustments in the smart devices market;
* Advanced Formulations at ? 122 m, down (10)% yoy, reflecting weaker oil
& gas market conditions compared to Q1 2015 when this market started to
decline;
* Performance Chemicals at ? 199 m, up 7% yoy, thanks to cost efficiency
gains, especially in soda ash;
* Functional Polymers at ? 65 m, up 54% yoy, driven by demand, increased
net pricing and a higher contribution from RusVinyl;
* Corporate and Business Services at ? (51) m, benefiting from cost
optimization programs and delivery of Cytec synergies; Q1 2015
underlying EBITDA was ? (35) m, impacted by the ? 30 m one-off post-
retirement benefits.
* Underlying net income, Solvay share, was ? 192 m, down (5)%, as a result of
scope effects in discontinued operations, following the creation of Inovyn
in July 2015.
* Free cash flow of ? 9 m improved versus ? (358) m in the first quarter of
2015, both on IFRS and underlying basis, primarily reflecting a significant
reduction of seasonal working capital needs and the anticipated reduction of
capital expenditure.
* Underlying net financial debt rose to ? (6.8) bn from ? (6.6) bn at the
start of the year, following the ? (138) m payment of the interim dividend
to Solvay's shareholders and other financial charges.
Q1 2016 IFRS results
* Net income, Solvay share, on an IFRS basis was ? 15 m versus ? (12) m in
2015 on a pro forma unaudited basis (see table on page 14), and ? 140 m as
reported historically([2]).
* Net financial debt, on an IFRS basis, was ? (4.6) bn, excluding the
perpetual hybrid bonds.
Quote of the CEO, Jean-Pierre Clamadieu
In the first quarter of the year, we delivered on our priorities. The smooth and
swift integration of the former Cytec teams and businesses as part of Solvay
puts us well on track to achieve our recently increased synergy targets. Our
earnings grew against strong comparables in 2015, supported by a ninth straight
quarter of solid pricing power which contributed to a record margin of 21%. In
Advanced Materials we offset the ongoing inventory adjustments in smart devices
with growth in other applications. While Advanced Formulations continued to
suffer from the downturn in oil and gas, we took measures to enhance
competitiveness across operating segments. Our reinforced focus on cash,
including more efficient working capital management and selective capex
allocation, led to a substantial improvement in cash generation and paves the
way to meet our objectives for the year.
2016 Outlook
Based on the first quarter results and the current macro-economic environment,
Solvay reaffirms its guidance of high-single digit underlying EBITDA growth in
2016, compared to the pro forma ? 2,336 m in 2015. This growth is expected to be
back-end loaded. Free cash flow is expected to exceed ? 650 m, more than 30%
higher than the prior year pro forma level.
([1]) The underlying data compares to pro forma 2015, as if the Cytec
acquisition had taken place on January 1, 2015. The end-of-period balance sheet
data compare to the position at the start of the period.
([2]) Cytec was not included in the 2015 IFRS financial statements, whereas the
Q1 2016 net income includes the impacts of the purchase price allocation, as
well as the related result from portfolio management and reassessments.
FORENOTE
The results of former Cytec are consolidated in the Group's income and cash flow
statements since January 1, 2016. Comparative information for the first quarter
and full year 2015 is presented on an unaudited pro forma basis as if the
acquisition of Cytec had taken place on January 1, 2015.
Besides IFRS accounts, Solvay also presents underlying Income Statement
performance indicators to provide a more consistent and comparable indication of
the Group's financial performance. The underlying performance indicators adjust
IFRS figures for the non-cash Purchase Price Allocation (PPA) accounting impacts
related to acquisitions, for the coupons of perpetual hybrid bonds, classified
as equity under IFRS but treated as debt in the underlying statements, and for
other elements that would distort the analysis of the Group's underlying
performance.
The comments on the results made on pages 3 to 13 are on an underlying basis,
unless otherwise stated.
Follow us on Twitter (at)SolvayGroup
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|An international chemical and advanced materials company, Solvay assists its|
|customers in innovating, developing and delivering high-value, sustainable|
|products and solutions which consume less energy and reduce CO2 emissions,|
|optimize the use of resources and improve the quality of life. Solvay serves|
|diversified global end markets, including automotive and aerospace, consumer|
|goods and healthcare, energy and environment, electricity and electronics,|
|building and construction as well as industrial applications. Solvay is|
|headquartered in Brussels with about 30,900 employees spread across 53 |
|countries. It generated pro forma net sales of ? 12.4 bn in 2015, with 90% |
|made from activities where it ranks among the world's top 3 players. Solvay SA|
|(SOLB.BE) is listed on Euronext in Brussels and Paris (Bloomberg: SOLB.BB -|
|Reuters: SOLB.BR). |
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[HUG#2008906]
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Datum: 03.05.2016 - 07:05 Uhr
Sprache: Deutsch
News-ID 468063
Anzahl Zeichen: 8565
contact information:
Town:
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Kategorie:
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