Solvay Group results from the first quarter of 2011[1]
(Thomson Reuters ONE) -
EMBARGO: Brussels, May 9, 2011 at 6:00 p.m.
REGULATED INFORMATION
Solvay Group results from the first quarter of 2011[1]
Excellent operating result (EUR 197 million):
+79% compared to the first quarter of 2010
+37% compared to the fourth quarter of 2010
* Group sales (EUR 1,670 million) improved by 23% compared to the first
quarter of 2010, resulting from an increase in volumes (+10%) and sales
price (+12%) in Group activities
* Group operating result (EUR 197 million) balanced between the two Sectors:
* Chemicals (EUR 101 million): record result (+55% compared to the first
quarter of 2010); the increase in sales prices and volumes
compensated for higher energy costs
* Plastics (EUR 116 million): +108% compared to the first quarter of
2010, primarily thanks to an increase in sales volumes in both Specialty
Polymers and Vinyls
* Net result from continuing operations (EUR 98 million)improved compared to
the first quarter of 2010 (EUR 12 million)
* New organizational structure (Horizon) in place since April 1, 2011
Agreement announced on April 4 for launch of a friendly cash offer for Rhodia;
closing expected in August 2011
Group sales amounted to EUR 1,670 million, up by23% compared to the restated[1]
sales of the 1(st) quarter 2010. This improvement was reflected in both
Chemicals and Plastics. It is explained by an increase in volumes (+10%) and
sales prices (+12%) across all activities. Sales in Asia and South America
represent 25% of the total Group sales for the first quarter of 2011.
The Group's recurring operating result (REBIT[2]) amounted to EUR 197 million
(+79%). There was a clear improvement in operating margin (REBIT on sales):
11.8% in the first quarter of 2011 compared to 8.1% in the first quarter of
2010 and 9.5% in the fourth quarter of 2010. This improvement is explained by
better capacity utilization rates and by the increase in sales prices, which
compensated for increased costs of energy and some raw materials. The margin
improvement for Specialty Polymers was of particular note; it was sustained by
additional growth in sales volumes, by an improvement in product mix and by
slightly higher sales prices. Over the course of the upcoming quarters, the
Group will continue to dynamically manage the increase in energy and ethylene
costs.
The Group's REBITDA[3] amounted to EUR 285 million (+46%). At the end of March
2011, the Solvay Group was in a net cash surplus situation of EUR 2,689 million.
The total cash available at the end of March 2011 amounts to EUR 5,386 million.
It will partly be used to finance the purchase of the shares of Rhodia (up to
EUR 3.4 billion) in the friendly cash offer announced on April 4(th), 2011.
Chemicals Sector sales (EUR 800 million) improved by 23%. Sales volumes remained
high at the start of this year; they were up by 7% compared to the first quarter
of 2010. The sustained level of demand contributed to an increase in sales
prices (on average, up by 15%), which compensated overall for the rise in energy
costs. The operating result of the Sector reached the record level of EUR 101
million; it was up by 55% compared to the first quarter of last year. This
increase cut across all activities.
Plastics Sector sales (EUR 870 million) were up by 24%; this increase was seen
both in Specialty Polymers (+23%) and in Vinyls (+24%). Specialty Polymers
continued to benefit from very strong demand at the beginning of 2011. The
improvement in their sales came from continued increases in sales volumes, a
better product mix and, to a lesser extent, an increase in sales prices. This
explains the improvement in margins and operating result for this cluster of
activities. The net improvement in sales and operating result of the vinyls
activities came from growth in sales volumes in Europe (SolVin) and in South
America (Indupa) and the good performance of Vinythai (Asia). The operating
result for the Plastics Sector (EUR 116 million) more than doubled compared to
last year.
[1] Financial data for the year 2010 were restated to take into account the two
following changes:
Since January 1, 2011, the Group consolidates joint ventures using the
equity method instead of the proportionate method (in line with IAS 31) with
a negative impact on the sales of the 1(st) quarter 2010 of EUR 244 million.
More information about this is provided on pages 12 and 13 of this press
release.
Data from the results of the pharmaceuticals activities up to February
15, 2010 in the Group accounts are consolidated under a single heading in
the income statement: "Result from discontinued operations".
[2] REBIT: measure of operating performance (this is not an IFRS concept as
such)
[3] REBITDA: REBIT, before recurring depreciation and amortization
The Solvay Group is attentive to the macro-economic developments and the
evolution of energy and ethylene costs.
In the context of the globally favorable business climate and based on its
strategy of sustainable and profitable growth, Solvay expects to improve its
annual operating result, both in Chemicals and Plastics activities in 2011.
To obtain additional information:
Erik De Leye Patrick VERELST
Corporate Press Officer (SOLVAY S.A.) Head of Investor Relations (SOLVAY S.A.)
Tel: 32 2 509 72 30 Tel: 32 2 509 72 43
E-mail: erik.deleye(at)solvay.com E-mail: patrick.verelst(at)solvay.com
The full press release is available on http://www.solvay-investors.com/
Press release:
http://hugin.info/133981/R/1513825/449755.pdf
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Source: Solvay S.A. via Thomson Reuters ONE
[HUG#1513825]
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Datum: 09.05.2011 - 18:09 Uhr
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News-ID 54430
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