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Solvay group: 1st quarter 2013 results


May 13, 2013 - London

Brussels, May 13, 2013

Highlights Q1 2013

Group net sales down (3)% YoY at € 3,010 m with volumes down (2)%, prices stable and forex impacts slightly negative

  • REBITDA at € 454 m, down (12)% YoY against demanding comparables, up 6% versus Q4'12

    - Growth engines segments, Consumers Chemicals and Advanced Materials, posted continuous growth with REBITDA up 10% and 3%, respectively, despite the absence of favorable price conditions enjoyed last year

    - Performance Chemicals down (17)% mainly due to low volumes in Essential Chemicals while Acetow posted a new record

    - Functional Polymers down (14)% suffering from persisting depressed demand and poor margins at both Polyamide and Vinyls

    - In Energy Services, as expected, lower volumes of CER in its phase-down

    - Overall satisfactory pricing power.

  • EBIT at € 250 m vs € 287 m in Q1'12 (IFRS EBIT at € 217 m vs € 207 m in Q1'12)
  • Net income at € 101 m vs € 119 m in Q1'12. Net income (Group share) at € 86 m vs € 110 m in Q1'12 (IFRS Net income (Group share) at € 63 m vs € 50 m in Q1'12)
  • Free Cash Flow € (17) m ; Net Debt € 1,313 m, up € 188 m vs. YE'12

  
Non-binding letter of intent signed with Ineos for the combination of our respective European Chlorovinyls activities into a 50/50 JV

  
Quote of the CEO

Europe's economic slowdown weighed on demand and trading conditions impacting all of our activities in the region. Our businesses in North America and Asia performed well, but remained subdued in Latin America. Meanwhile, our growth engines continued to deliver. Furthermore, we made significant headway in strengthening our foundations, while our efficiency programs remained on track. The planned chlorovinyls joint venture with Ineos will be a major step in the reshaping of our portfolio and one that will substantially enhance our business profile.

Outlook

For the moment, we do not observe any significant improvement in the macroeconomic and business environment compared to the preceding months. Even if this challenging context were to persist throughout the year, Solvay is confident in its ability to improve its REBITDA in 2013 compared to last year's, excluding the impacts of the exceptional pricing of guar and the sale of carbon credits (combined totaling € 190 m in 2012). Moreover, Solvay remains committed to its ambition for 2016 while speeding up its transformation through value-creation initiatives.

Footnotes:
All references to 2012 P&L data are to be deemed restated for the new business organization effective as from January 1st 2013, the reporting of Solvay Indupa as discontinued operations and for the application of IAS 19 revised. All P&L indicators referred to this document are to be deemed adjusted, unless otherwise stated as IFRS accounts. Adjusted indicators exclude non-cash PPA accounting impacts related to the Rhodia acquisition.

  

As an international chemical group, SOLVAY assists industries in finding and implementing ever more responsible and value-creating solutions. The Group is firmly committed to sustainable development and focused on innovation and operational excellence. Solvay serves diversified markets, generating 90% of its turnover in activities where it is one of the top three worldwide. The group is headquartered in Brussels, employs about 29,000 people in 55 countries and generated 12.4 billion euros in net sales in 2012. Solvay SA SOLB.BE) is listed on Nyse Euronext in Brussels and Paris (Bloomberg: SOLB.BB - Reuters: SOLBt.BR).

Lamia Narcisse
Media Relations
+33 1 53 56 59 62
Caroline Jacobs
Media Relations
+32 2 264 1530
Maria Alcon-Hidalgo
Investor Relations
+32 2 264 1984
Edward Mackay
Investor Relations
+32 2 264 36 87
To read the complete press release in PDF



This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

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Source: Solvay S.A. via Thomson Reuters ONE

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