Solvay Reports 102% Earnings Increase
CHEMMONITOR.COM – The second quarter of 2012 appeared to be very successful for Solvay. Comparing to Q2 2011, revenue increased by 69.2% to EUR 3,419 M, gross profit declined by 6.6% and amounted EUR 625 M, operating income added 85.5% and equaled EUR 434 M, net income reached EUR 222 M which is a 101.8% increase.
Company’s performance was affected by various industry trends:
- Persisting difficult market conditions, volume and margin decline for Vinyls and Polyamide;
- Record results in Specialty Polymers and Consumer Chemicals driven by strong pricing power;
- Sustained high-level performance in Essential Chemicals and Acetow & Eco Services.
Plastics segment brought EUR 998 M of revenues, a 1% increase over the corresponding period of the last year. Chemicals sales added 5% to its previous amount and comprised EUR 760 M. Rhodia contributed EUR 1,574 M of revenues, and it’s a 1% decline. The trends affecting Plastics performance were strong REBITDA margin, low demand, difficult market conditions, operational excellence. Chemicals segment was influenced by REBITDA improvement, successful performance of Epirerol® plant in Thailand, fluorchemicals recovery. Rhodia business received strong support from Consumer Chemicals and Acetow & Eco Services, as well as wise pricing and Polyamide margin squeeze.
With massive expansion of manufacturing and R&D facilities in China and India Solvay is well-positioned to fulfill its targets in 2012. Business dynamics favor the company, and despite declining demand in several sectors, Solvay plans to achieve REBITDA levels of 2011., and despite declining demand in several sectors, Solvay plans to achieve REBITDA levels of 2011.
Founded in 1863 and headquartered in Brussels (Belgium), Solvay engages in chemical manufacture being active in three segments: Chemicals, Plastics and recently acquired Rhodia. Solvay serves various markets: Aircraft & Aerospace, Alternative Energy, Automotive, Building & Construction, Chemical Industry, Consumer Goods, Detergent, Cleaning & Hygiene products, Electricity, Electronics, Feed & Farming, Food & Beverages, Glass Industry, Human Health, Oil & Gas, Packaging, Paper, Plumbing, Water & Environment, Wire & Cables. The company is public and trades on Brussels Stock Exchange under the ticker SOLB.