SOLVAY GROUP - THIRD QUARTER & FIRST 9 MONTHS 2017 FINANCIAL REPORT
(Thomson Reuters ONE) -
Brussels, November 8, 2017
HIGHLIGHTS
* Volumes up across all operating segments, resulting in 9% increase in Q3
* Underlying EBITDA growth of 1% in Q3 and 9% year to date
* On track to achieve full year 2017 EBITDA and free cash flow outlook
Third quarter 2017 results
Net sales totaled ?2.5 billion, with 9% volume growth offsetting foreign
exchange conversion, leading to 4% growth overall.
Underlying EBITDA was up 1% at ?553 million. Higher volumes, net of higher raw
material, energy and fixed costs, delivered organic growth of 5%. Conversion of
foreign exchange had a (3)% adverse effect. EBITDA margin was 22%.
* Advanced Materials: ?294 million, with growing demand for high-performance
polymers in automotive, batteries and smart device markets. Volumes of
composites used in aeronautics were overall stable, but fell in industrial
applications.
* Advanced Formulations: ?129 million, with strong recovery continuing for
shale oil & gas exploration formulations, and volumes were up in technology
solutions for polymer additives and specialties.
* Performance Chemicals: ?178 million with increasing energy costs more than
offsetting the strong volume growth in soda ash and the contribution from
the new peroxide plant.
* Corporate & Business Services: ?(47) million, largely stable year on year,
reflecting continued cost discipline offsetting inflation.
Profit attributable to Solvay share on an IFRS basis was ?179 million, and
includes a ?(91) million impairment on the retained polyamide assets in Latin
America. On an underlying basis it was ?229 million, down from ?247 million in
2016, reflecting a lower contribution from discontinued operations following the
sale of Vinythai and Acetow in the first half of the year.
Free cash flow from continuing operations was ?195 million in the quarter,
resulting in an equivalent reduction in net debt.
Interim gross dividend at ?1.38 per share, payable on January 18, 2018.
First 9 months 2017 results
Net sales totaled ?7.6 billion, up 7%, driven by volume growth across all
operating segments.
Underlying EBITDA grew 9% to ?1,737 million, primarily reflecting volume growth
and including the one-time synergy benefit announced in the second quarter. The
underlying EBITDA margin over the nine month period reached a record 23%.
Profit attributable to Solvay share on an IFRS basis was ?792 million. On an
underlying basis it grew 20% to ?794 million, reflecting higher earnings and
lower financial charges.
Free cash flow from continuing operations rose to ?446 million, up 33% compared
to the same period in 2016.
Underlying net debt(1) decreased to ?5.5 billion from ?6.6 billion at the start
of the year, following the completion of divestments. Net debt on an IFRS basis
ended at ?3.3 billion.
CEO Jean-Pierre Clamadieu's comment
"EBITDA progressed in organic terms, as strong volume growth across operating
segments offset fixed cost increases and helped to maintain leading margins. The
recently announced polyamide divestment will conclude the profound
transformation of our business portfolio that we initiated 5 years ago. Going
forward, our multi-specialty businesses are well-positioned to deliver a
continued strong financial performance in 2017 and beyond."
2017 Outlook(2
)Solvay reaffirms its full year outlook for underlying EBITDA to grow in the
range of 6% to 8%, and expects to generate more than ?800 million of free cash
flow.
(1 )Underlying net debt includes the perpetual hybrid bonds, accounted for as
equity under IFRS.
(2) Outlook based on constant scope and foreign exchange.
Forenote
Following the announcements in December 2016 of the divestment of the Acetow and
Vinythai businesses and in September 2017 of plans to divest the Polyamide
business, these have been reclassified as discontinued operations and as assets
held for sale. For comparative purposes, the third quarter and first 9 months of
the 2016 income statement have been restated. The Vinythai transaction was
completed end of February 2017 and the Acetow transaction end of May 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 8 are on an
underlying basis, unless otherwise stated.
For more information, please take a look at our Investors website
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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.
Media Relations
Caroline Jacobs Amandine Grison
+32 2 264 1530 +33 1 40 75 81 49
Investor Relations
Kimberly Stewart Jodi Allen Geoffroy Raskin Bisser Alexandrov
+32 2 264 3694 +1 6098604608 +32 2 264 1540 +32 2 264 3687
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Source: Solvay S.A. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 08.11.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 567117
Anzahl Zeichen: 7719
contact information:
Town:
Brussels
Kategorie:
Business News
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