On July 30th, Solvay signed a binding agreement to sell its U.S-based Eco Services
Group net sales at € 2,640 m, up 2% yoy, with volumes 3%, forex (4)%, scope 3% and stable prices.
REBITDA at € 485 m, up 10% yoy driven by volume growth, both organic and external, and sustained strong delivery on excellence measures. Unfavorable foreign exchange rates and CER phase-out continued to weigh, € (60) m. REBITDA margins widened to 18.4% of net sales, up 140 basis points yoy.
Advanced Formulations at € 119 m was up 29% yoy, driven by strong volumes and very healthy contribution of Chemlogics;
Advanced Materials reported a new record at € 187 m and was up 16% yoy, underpinned by strong innovation-driven volume growth and operational efficiency;
Performance Chemicals at € 189 m was down 1% yoy, with operational efficiency progress offset by temporary logistic and maintenance issues and forex headwinds;
Functional Polymers at € 38 m was up 40% yoy, supported by high manufacturing yields, broad excellence initiatives delivery and pricing;
Corporate and Business Services was € (47) m. CER sales phase-out impact mitigated by sustained cost savings and favorable phasing in corporate programs.
Adjusted EBIT at € 291 m, up 56% yoy; Adjusted Result from continuing operations at € 150 m, up 31% yoy;
Impairment charge, mainly non-cash, of € (477) m reported in discontinued operations in relation to the planned creation of INOVYNTM, the European chlorovinyls JV with Ineos;
Adjusted Net Income, Group share at € (292) m (including INOVYNTM impairment of € (422) m after non-controlling interests' share) versus € 148 m in 2013;
Free Cash Flow at € 89 m; net debt increased € 185 m from Q1'14 to € 1,644 m.
H1 highlights
Group net sales at € 5,192 m, up 2% yoy, with volumes 3%, forex (4)%, scope 3% and stable prices.
REBITDA at € 953 m, up 11% yoy driven by volume growth and excellence initiatives. Unfavorable foreign exchange rates and CER phase out weighed € (89) m;
Adjusted EBIT at € 551 m, up 33% yoy; Adjusted Result from continuing operations at € 260 m, up 27% yoy;
Adjusted Net Income, Group share at € (186) m included INOVYNTM impairment versus € 235 m in 2013;
Free Cash Flow at € (8) m; net debt increased by € 503 m from YE'13 to € 1,644 m.
Quote of the CEO Solvay reported another set of solid results in the second quarter with double-digit operating profit growth and an encouraging underlying dynamic. Innovation-driven demand bolstered volumes at our growth engines Advanced Formulations and Advanced Materials, while Chemlogics beat our expectations. In addition, Group-wide excellence measures amply offset unfavorable foreign exchange rates and contributed to a significant margin expansion. This strong quarterly performance confirms that Solvay's transformation is delivering on all fronts. For the remainder of the year, the Group will focus on completing its current portfolio projects as demonstrated with Eco Services divestment announced today, and build on its growth and excellence momentum.
Outlook Solvay reiterates its confidence that 2014 should show good operating performance. The Group confirms its guidance and expects high single-digit year-on-year REBITDA growth in 2014 at prevailing foreign exchange rates. This expectation reflects the eventual restatement in 2013 and 2014 reference periods for the discontinuation of Eco Service business.
Follow us on Twitter @SolvayGroup: https://twitter.com/SolvayGroup N.B. 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 press release in PDF: http://hugin.info/133981/R/1843957/642281.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
Following the spinoff of its Specialty Chemicals business Syensqo in December 2023, Solvay SA is focused on providing chemical products and intermediates to customers in a broad range of consumer and industrial end-markets. Originally founded in 1863, Solvay's current portfolio is operated through five divisions: Soda Ash and Derivatives, Peroxides, Silica, Special Chem and Coatis. Solvay SA offers customer-proximate regional locations, large scale as well as competitive cost curve positioning due to the vertical integration in its main businesses, process technology and product know-how. The company has a balanced global footprint with 7 major R&I centres as well as 42 industrial sites in 20 countries across the world.