SOLVAY GROUP - THIRD QUARTER & FIRST 9 MONTHS 2017 FINANCIAL REPORT
08 Novembre 2017 - 07:00AM
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
debt1 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 Outlook2
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
Follow us on
twitter @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.
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 |
To read this release in
PDF
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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
Solvay (EU:SOLB)
Graphique Historique de l'Action
De Fév 2024 à Mar 2024
Solvay (EU:SOLB)
Graphique Historique de l'Action
De Mar 2023 à Mar 2024