Solvay 2018 first quarter results: Strong volume growth counters forex headwinds
May 03 2018 - 1:01AM
Underlying
EBITDA: €533 million -2.6% (+9% organically [1])
- Strong volumes across Advanced Materials and
Advanced Formulations, led to organic growth in net sales of 6% and
in underlying EBITDA of 9%
- Underlying EBITDA down 3% due to the significant
adverse forex conversion impact of 8%, mainly US$, and smaller
divestments leading to a 2% reduction
- EBITDA margin sustained at 21%
- Advanced Materials: €288 million -1% (+9%
organically [1])
- Double-digit volume growth in Specialty Polymers
and Composite Materials
- Persistent strong demand for high-performance
polymers across applications, particularly in automotive
- Order levels picking up well in aerospace
composites, driven by military and commercial transport
programs
- Advanced Formulations: €118 million -7% (+10%
organically [1])
- Strong volume growth in North American oil &
gas market
- Other businesses had solid sales performances
overall
- Performance Chemicals: €177 million -8% (-1%
organically [1])
- Positive pricing in Peroxides and Coatis
- Solid demand for soda ash continued in a context
of limited margin erosion, as anticipated
Free cash flow from continuing
operations: €105 million vs €168 million in 2017
- Sustained cash generation, leading to €147
million free cash flow, including €105 million from continuing
operations
- Free cash flow to Solvay shareholders, after
financial payments, of €141 million, of which €99 million from
continuing operations
- Underlying net debt slightly lower at €(5.3)
billion
2018
outlook confirmed
- Grow EBITDA by 5% to 7% organically, excluding
scope and forex effects
- Deliver free cash flow from continuing operations
above 2017 level
CEO Jean-Pierre
Clamadieu: "Solvay's EBITDA grew 9% organically in the
first quarter, driven by a continued rise in volumes across our
Advanced Materials and Advanced Formulations clusters. As
anticipated, foreign exchange headwinds were significant, yet we
are encouraged by the positive underlying trends in our key
markets. During the quarter, we launched a far-reaching project to
simplify our organization to better focus on our customers."
Transformation
update: Solvay plans to simplify its organization to adapt
to its new business portfolio and changing customer base. The
initiative will considerably reinforce the financial performance of
the Group.
- Recurrent annual EBITDA contribution of some €150
million to be delivered over three years.
- One-time restructuring cost of €(134) million
taken in the first quarter.
The full pres release
and financial report is available on:
https://www.solvay.com/en/investors/news_and_results/results/2018/index.html
All comparisons are
made with the equivalent period of the year before, except where
mentioned explicitly otherwise.
[1]
Excluding forex conversion and scope effects
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Solvay
is an advanced materials and specialty chemicals company, committed
to developing chemistry that addresses key societal challenges.
Solvay innovates and partners with customers worldwide in many
diverse end markets. Its products are used in planes, cars,
batteries, smart and medical devices, as well as in mineral and oil
and gas extraction, enhancing efficiency and sustainability. Its
lightweighting materials promote 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 24,500* employees in 61 countries. Net sales were €10.1
billion in 2017, with 90% from activities where Solvay ranks among
the world's top 3 leaders, resulting in an EBITDA margin of 22%.
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. *Figures take into account the announced
divestment of Polyamides. |
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You can find here the press 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
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