05/11/2012

Solvay up in Q3 despite fragile economic backdrop


Brussels-based Solvay, which last year purchased Rhodia, has posted earnings in advance of market expectations as a result of its increased ability to output speciality polymers.
Third-quarter income before exceptionals was up 4% to £447m (€555.5m) on sales of £2.7bn (€3.4bn) – a rise of 1.1% on the same quarter 2011.
“While differentiated market dynamics by business segments persisted in the third quarter, the breadth and quality of the product portfolio allowed Solvay to post another set of good results,” said Solvay CEO Jean-Pierre Clamadieu.
“The earnings strength combined with an effective working capital management generated a strong free cash flow. With the capacity extensions for its growth engines, Solvay continues executing its strategic journey towards its growth ambition. The integration progressed very well, establishing a solid foundation for the group to move forward.”
According to Solvay the “fragile macroeconomic environment reduces visibility across markets and industries”. As a result, Q4 figures will reflect both seasonal inventory management from customers and also the slowdown of some market segments.

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