SOLVAY GROUP - FINANCIAL REPORT FIRST QUARTER 2017
(Thomson Reuters ONE) -
Brussels, May 3, 2017
Highlights
* Strong start to the year, with 12% EBITDA growth and margin at 21%
* Cash improvement continues, with free cash flow at ? 160 million((1))
* On track to meet or exceed full year 2017 outlook
First quarter 2017 results
* Net sales totaled ? 2.97 billion, up 9.7%, with a 7.5% increase in volume &
mix supported by positive currency effects.
* Underlying EBITDA grew 12% to ? 616 million, with volume-driven growth
across each of the operating segments. Overall EBITDA margin was 21%.
Operational excellence measures offset most of the raw material headwinds
and higher fixed cost base from organic growth.
* Advanced Materials: ? 292 million, up 9% year on year with good volume
growth in automotive, batteries and industrial;
* Advanced Formulations: ? 127 million, up 4% year on year with good
growth in agro and industrial applications;
* Performance Chemicals: ? 184 million, up 12% year on year with solid
soda ash and bicarbonate demand and the supply contract of the new HPPO
unit in Saudi Arabia taking effect;
* Functional Polymers: ? 71 million, up 34% year on year driven by robust
polyamide performance;
* Corporate & Business Services: ? (58) million versus ? (56) million in
the first quarter of 2016.
* Profit attributable to Solvay share on IFRS basis was ? 235 million. On
underlying basis it was ? 256 million, 33% up versus ? 192 million in 2016,
reflecting higher earnings and lower financial charges.
* Free cash flow from continuing operations improved significantly to ? 160
million versus ? (13) million in the first quarter of 2016, with higher
EBITDA supplemented by lower capex and maintained working capital
discipline.
* Underlying net debt((2)) fell to ? (6.4) billion from ? (6.6) billion at
end-December, following the completion of the Vinythai divestment. Net debt
on an IFRS basis ended at ? (4.2) billion.
CEO Jean-Pierre Clamadieu's comment
"Our results reflect a strong start to the year, with all operating segments
delivering volume growth in the first quarter. We will continue on the growth
path we defined in our mid-term objectives."
2017 Outlook((3)
)Based on the strong start to 2017 and improving market conditions, Solvay
expects to meet or exceed its previously given guidance of mid-single digit
underlying EBITDA growth and more than ? 800 million of free cash flow from
continuing operations.
(1) Free cash flow from continuing operations
(2) Underlying net debt includes the perpetual hybrid bonds, accounted for as
equity under IFRS.
(3) Outlook based on constant scope and foreign exchange.
Forenote
Following the announcements in late 2016 of plans to divest the Acetow and
Vinythai businesses, these have been reclassified as discontinued operations and
as assets held for sale. For comparative purposes, the first quarter 2016 income
statement has been restated. The Vinythai transaction was meanwhile completed in
February 2017.
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 14 are on an
underlying basis, unless otherwise stated.
For more information, please take a look at our Investors website
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.
Caroline Jacobs Kimberly Jodi Allen Geoffroy Raskin Bisser
Stewart Alexandrov
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To read the complete report in PDF:
http://hugin.info/133981/R/2100179/796560.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
Unternehmensinformation / Kurzprofil:
Datum: 03.05.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 539862
Anzahl Zeichen: 6502
contact information:
Town:
Brussels
Kategorie:
Business News
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