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Solvay's polymers division helps 6% profit rise

Thursday, Nov 10, 2016

Speciality polymer supplier Solvay reported a 6% rise in third quarter profit, despite an 8% drop in net sales.

The Belgium-based firm said reduced fixed costs helped earnings before interest, tax, depreciation and amortisation (Ebitda) grow to €664m (£591m).

Net sales totalled €2.9bn (£2.6bn), which the firm attributed to a decline in both prices and volumes, foreign exchange fluctuations and changes to the make-up of its portfolio.

Solvay’s functional polymers division at €76m (£68m) was up 25% year-on-year, mainly driven by strong performance in polyamides.

The company said it expected underlying Ebitda to increase by a double-digit percentage figure in the fourth quarter, with full-year growth of between 7-8%.

Chief executive Jean-Pierre Clamadieu, said: “Solvay had a solid third quarter, with 6% growth in Ebitda, a record margin and continued strong cash generation.

“The strength of our broad portfolio and the continued focus of our business teams resulted yet again in strong pricing power. Operational excellence programs led to lower variable costs and, combined with accelerated Cytec synergy delivery, to reduced fixed costs.

“These efforts allowed us to overcome softer demand in some of our markets compared to last year.”

 

Source : prw.com

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