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Solvay Group:1st Quarter 2014 Business Review


May 6, 2014 - London

Brussels, May 6th, 2014

Q1 highlights

  • Group net sales at € 2,552 m, up 1% yoy, with volumes 3%, prices (1)%, forex (4)% and scope 4%.
  • REBITDA at € 467 m, up 11% yoy driven by volume growth (organic and external) and strong delivery on excellence measures, and despite unfavorable foreign exchange rates and one-offs. REBITDA margin widens to 18.3% of net sales, up 150 basis points yoy.
     
    • Advanced Formulations at € 102 m, down (9)% yoy, as Chemlogics' strong contribution was insufficient to offset one-off impacts from industrial issues and extreme weather conditions, and adverse forex;
       
    • Advanced Materials at record € 175 m, up 13% yoy, underpinned by strong innovation-driven volume growth and operational efficiency;
       
    • Performance Chemicals at € 188 m, up 14% yoy, thanks to good pricing power and benefits from breakthrough excellence programs;
       
    • Functional Polymers at € 40 m, up 19% yoy, supported by high manufacturing yields, broad excellence initiatives and pricing;
    • Corporate and Business Services at € (39) m. Net costs down 16% yoy. CER sales phase-out in 2013 was mitigated by tight cost control and favorable currency impacts on costs.
  • Adjusted EBIT at € 260 m, up 14% yoy;
  • Adjusted Net Income, Group share at € 107 m (€ 86 m in 2013);
  • Adjusted EPS at € 1.28(€ 1.03 in 2013);
  • Free Cash Flow at € (97) m; net debt increased by € 318 m to € 1,459 m from YE'13;
  • Improving balance sheet efficiency: gross debt repayment of € 1.3 bn equivalent to take place by May

Quote of the CEO

Solvay made a good start to the year thanks to improved demand and benefits from our excellence initiatives. The demand recovery was reflected in higher volumes in most of our businesses, while Chemlogics showed double-digit operational earnings growth.Results from Group-wide excellence initiatives helped to overcome headwinds from currency swings and one-off effects. As a result, Solvay delivered solid earnings growth and margin expansion in the first quarter. Throughout the year, the Group will continue its profound transformation, focused on completing the various portfolio projects it initiated and on further rolling out its excellence measures to create a higher growth, less cyclical and more valuable company.
  
Outlook

The encouraging first quarter underpins our confidence that 2014 will show good operating performance. The Group expects high single-digit REBITDA growth at current perimeter and foreign exchange rates, and compared to the 2013 level as restated.

FORENOTE
All 2013 data are restated for comparison purposes for the Group's application of IFRS 11 effective January 1st 2014.

Furthermore, Solvay presents Adjusted Income Statement performance indicators that exclude non-cash Purchase Price Allocation (PPA) accounting impacts related to the Rhodia acquisition.

To read the presentation in PDF

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As an international chemical group, SOLVAY assists industries in finding and implementing ever more responsible and value-creating solutions. Solvay generates 90% of its net sales in activities where it is among the world's top three players. It serves many markets, varying from energy and the environment to automotive and aeronautics or electricity and electronics, with one goal: to raise the performance of its clients and improve society's quality of life. The group is headquartered in Brussels, employs about 29,400 people in 56 countries and generated 9.9 billion euros in net sales in 2013. Solvay SA is listed as SOLB.BE on NYSE Euronext in Brussels and Paris (Bloomberg: SOLB:BB - Reuters: SOLB.BR).


Lamia Narcisse
Media Relations
+33 1 53 56 59 62
Caroline Jacobs
Media Relations
+32 2 264 1530
Maria Alcon
Investor Relations
+32 2 264 1984
Geoffroy Raskin
Investor Relations
+32 2 264 1540
Edward Mackay
Investor Relations
+32 2 264 3687
Read this entire press release in PDF



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
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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