SOLVAY GROUP HIGHLIGHTS 3RD QUARTER AND 1ST 9 MONTHS 2016
(Thomson Reuters ONE) -
Brussels, November 8, 2016
Q3 2016 results((1) )
* Net sales totaled ? 2.9 bn, down (8)%, mainly due to a (3)% decline in both
prices and volumes. Foreign exchange fluctuations and changes in portfolio
scope together led to a (2)% decrease.
* Underlying EBITDA grew 6% to ? 664 m. Pricing power contributed 4%,
reflecting the quality of the portfolio and ongoing focus by the business
teams. Excellence programs combined with synergy deliveries reduced fixed
costs, leading to a further 6% EBITDA increase. Negative volume evolution
and foreign exchange had a (4)% and (2)% impact, respectively. The EBITDA
margin reached a new consecutive record of 23% in the quarter.
- Advanced Materials at ? 292 m, down (2)% yoy, with broad-based growth and
operational excellence mostly offsetting the slower ramp-up in smart devices
compared to the peak quarter a year ago;
- Advanced Formulations at ? 114 m, down (12)% due to the year-on-year
decline in oil & gas;
- Performance Chemicals at ? 217 m, up 4% yoy, thanks to resilient volumes
and operational excellence;
- Functional Polymers, at ? 76 m, up 25% yoy, mainly driven by strong
performance in polyamides;
- Corporate & Business Services at ? (34) m, versus ? (71) m, reflecting
phasing effects, excellence and synergies delivery.
* Net income, Solvay share, on an IFRS basis was ? 176 m vs ? 163 m in 2015.
On an underlying basis it was ? 247 m, up 16%, reflecting higher operating
profit, with higher net financial charges offset by lower income taxes.
* Interim gross dividend of ? 1.32 per share, payable on January 18, 2017.
* Free cash flow was ? 280 m, up ? 35 m yoy, fully attributable to continuing
operations, which grew from higher EBITDA, lower capital expenditure and
improved working capital.
* Net debt on an IFRS basis was ? (4.3) bn. Underlying net debt((2)) decreased
to ? (6.5) bn from ? (7.0) bn end June, as a result of the higher free cash
flow and the proceeds from the sale of the lnovyn participation.
9M 2016 results((1))
* Net sales totaled ? 8.8 bn, down (6)%, chiefly as a result of lower prices
and foreign exchange fluctuations for (2)% each. Slightly lower volumes and
changes in the business scope led to an additional (2)% decrease.
* Underlying EBITDA grew 5% to ? 1,918 m, driven mainly by pricing power for
6% and fixed cost reduction for 3%. Both were supported by delivery of
operational excellence and synergies, more than offsetting the effect of
lower volumes and foreign exchange effects of (2)% each. Significant growth
in Performance Chemicals, Functional Polymers and Advanced Materials,
combined with a lower cost level in Corporate & Business Services, more than
offset the oil & gas headwinds in Advanced Formulations.
* Net income, Solvay share, on an IFRS basis was ? 376 m vs ? 288 m in 2015.
On an underlying basis it was ? 663 m, up 5%, reflecting EBITDA growth, as
well as lower non-controlling interests and income taxes. These more than
compensated for the absence of contribution from discontinued operations,
following scope change, and higher net financial charges.
* Free cash flow was ? 464 m, up ? 385 m yoy, as free cash flow from
continuing operations grew thanks to higher EBITDA, less capital expenditure
and lower working capital outflow.
Quote of the CEO, Jean-Pierre Clamadieu
Solvay had a solid third quarter, with 6% growth in EBITDA, a record margin and
continued strong cash generation. The strength of our broad portfolio and the
continued focus of our business teams resulted yet again in strong pricing
power. Operational excellence programs led to lower variable costs and, combined
with accelerated Cytec synergy delivery, to reduced fixed costs. These efforts
allowed us to overcome softer demand in some of our markets compared to last
year. Solvay's performance illustrates the transformation of the Group towards a
more resilient multi-specialty chemical company.
2016 Outlook
Based on the year-to-date performance and current market conditions, Solvay
expects double-digit underlying EBITDA growth in the fourth quarter. In line
with previous guidance, full year underlying EBITDA is thereby anticipated to
increase by approximately 7% to 8%, and free cash flow to exceed ?700 m.
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 third quarter
and 1st nine months of 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.
(1) The underlying and IFRS data presented in the highlights compare to
unaudited pro forma figures of the same period in 2015, as if the Cytec
acquisition had taken place on January 1, 2015.
(2) Underlying net debt includes the perpetual hybrid bonds, accounted for as
equity under IFRS.
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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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Source: Solvay S.A. via GlobeNewswire
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Datum: 08.11.2016 - 07:01 Uhr
Sprache: Deutsch
News-ID 505480
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Town:
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Kategorie:
Business News
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