SOLVAY GROUP FINANCIAL REPORT - FOURTH QUARTER & FULL YEAR 2016 - HIGHLIGHTS
(Thomson Reuters ONE) -
Press release - CEO Video - Toolkit
Brussels, February 24, 2017
* 16% EBITDA increase in the fourth quarter with growth in all segments
* Solid full-year performance with 7.5% EBITDA increase,
leading to 21% record margin and free cash flow of ? 876 million
* Full-year dividend((1)) raised 4.5% to ? 3.45 gross per share
Fourth quarter 2016 results((2) )
* Net sales totaled ? 2.8 billion, up 1.6%, mainly due to the 3.9% increase in
volume, partially offset by the (2.2)% reduction of sales prices.
* Underlying EBITDA grew 16% to ? 527 million. Volumes contributed 9.1%,
across the operating segments, supported by less pronounced seasonality.
Pricing power contributed 9.7%, benefiting from operational excellence
delivery. The EBITDA margin reached 19% in the quarter, up 2.4 percentage
points year on year.
* Advanced Materials rose 6.1% to ? 259 million year on year with good
volume growth in automotive, industrial, consumer goods and healthcare
which more than offset lower volumes in smart devices and aerospace;
* Advanced Formulations increased 5.6% to ? 124 million year on year with
a pick-up in volume growth, as strong performance in agro more than
offset a drop in oil & gas, which improved sequentially on the back of a
higher rig count;
* Performance Chemicals were 17% higher at ? 168 million year on year as a
result of solid volume growth, benefits from lower energy costs and
excellence initiatives across the segment;
* Functional Polymers grew 131% to ? 51 million year on year, primarily
driven by robust polyamide performance;
* Corporate & Business Services was at ? (75) million, equal to the fourth
quarter of 2015.
* Profit attributable to Solvay share, on an IFRS basis was ? 245 million
versus ? 112 million in 2015. On an underlying basis it was ? 183 million
versus ? 136 million in 2015, reflecting a rise in operating profit with
higher net financial charges partially offset by lower income taxes.
* Free cash flow was ? 412 million, stable versus the fourth quarter of 2015.
* Net debt on an IFRS basis was ? 4.4 billion. Underlying net debt((3))
increased slightly to ? 6.6 billion from ? 6.5 billion at end-September.
(1) Recommended dividend pending General Shareholders meeting.
(2) The underlying and IFRS data compare to unaudited pro forma figures of the
same period in 2015, as if the Cytec acquisition had occurred on January
1, 2015.
(3) Underlying net debt includes the perpetual hybrid bonds, accounted for as
equity under IFRS.
Full year 2016 results((1) )
* Net sales fell (4.7)% to ? 10.9 billion, as lower sales prices in a
deflationary raw material price environment weighed (2.3)%. Foreign exchange
fluctuations dented sales by (1.5)%. Volumes were stable overall.
* Underlying EBITDA grew 7.5% to ? 2,284 million, driven by pricing power of
5.9% and fixed cost reduction benefits of 2.9%. Operational excellence
exceeded ? 200 million, while completion of the Cytec integration delivered
? 70 million of synergies, well ahead of the initial plan. There were no
significant effects from volume/mix changes. Foreign exchange fluctuations
had a (1.9)% conversion effect. The EBITDA margin reached a record 21%, a
notable increase from 19% in 2015.
* Profit attributable to Solvay share, on an IFRS basis was ? 621 m vs ? 406
million in 2015. On an underlying basis it grew to ? 846 million versus ?
768 million in 2015.
* Free cash flow was ? 876 million, up ? 384 million year on year. Continuing
operations accounted for ? 736 million, an increase of ? 342 million, driven
by higher EBITDA, reduced capital expenditure and efficient working capital
management.
* CFROI increased to 6.3%, up 0.2 percentage point from 6.1% pro forma in
2015 on non-restated basis.
* Dividend increase proposed of 4.5% to ? 3.45 gross per share for 2016, of
which the balance is payable on May 16, 2017.
2017 Outlook((2)
)Solvay remains well on track to achieve its mid-term objectives. For 2017,
Solvay expects underlying EBITDA to grow by mid-single digit, mainly driven by
Advanced Materials and Advanced Formulations, and to generate more than
? 800 million of free cash flow from continuing operations.
Quote of the CEO, Jean-Pierre Clamadieu
"Solvay delivered solid full-year EBITDA growth supported by our transformation
and subsequent improvement of our customer profile. Our pursuit of operational
excellence, swift delivery of synergies and continued pricing momentum have
contributed strongly to our performance. The upgrade of our portfolio has also
enabled us to significantly lower our greenhouse gas intensity. Overall, these
elements combine to enhance our sustainable value creation for both customers
and shareholders."
(1) The underlying and IFRS data compare to unaudited pro forma figures of the
same period in 2015, as if the Cytec acquisition had occurred on January
1, 2015.
(2) A more detailed outlook may be found on page 8 of this report.
Forenote
Following the announcements at the end of 2016 of the intended divestments of
the Acetow and Vinythai businesses, these businesses are reclassified as
discontinued operations and as assets held for sale. For comparative purposes,
the 2015 income statement has been restated. These figures were published on
January 17.
The results of former Cytec are consolidated in the Group's income and cash flow
statements since January 1, 2016. Comparative information for the fourth 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 2 to 9 are on an
underlying basis, unless otherwise stated.
Follow us on twitter (at)SolvayGroup
Solvay is a multi-specialty chemical company, committed to developing chemistry
that addresses key societal challenges. Solvay innovates and partners with
customers in diverse global end markets. Its products and solutions are used in
planes, cars, smart and medical devices, batteries, in mineral and oil
extraction, among many other applications promoting sustainability. Its
lightweighting materials enhance cleaner mobility, its formulations optimize the
use of resources and its performance chemicals improve air and water quality.
Solvay is headquartered in Brussels with around 27,000 employees in 58
countries. Pro forma net sales were ? 10.9 billion in 2016, with 90% from
activities where Solvay ranks among the world's top 3 leaders. Solvay SA
(SOLB.BE) is listed on Euronext Brussels and Paris (Bloomberg: SOLB.BB -
Reuters: SOLB.BR) and in the United States its shares (SOLVY) are traded through
a level-1 ADR program.
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To read the complete financial report in PDF:
http://hugin.info/133981/R/2081644/784194.pdf
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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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Datum: 24.02.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 526301
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