The Plastics division (production and processing) of Solvay (B-1050 Brussels; www.solvay.com) grew sales by 13% to EUR 3.6 bn and recurring pretax earnings (REBIT) by 76% to EUR 397m in 2004. This was thanks largely to strong improvement on the production side, which helped to balance out higher energy costs and pressure from polymers price hikes on the processing side. Solvay said the launch of new products also helped to limit the impact. The division´s operating margin improved to 11% from 7% in 2004.

A closer breakdown shows that the processing segment – which includes shares in the joint ventures Pipelife and Inergy Automotive Systems – increased its sales by only 1% to EUR 1.4 bn. At the same time, turnover in the producing segment advanced by 22% to EUR 2.2 bn. This reflects in major part higher prices for PVC, the segment´s principal polymer. While REBIT on plastics processing declined by 4% to EUR 67m, earnings of the producing side soared by 113% to EUR 330m.

Solvay´s Plastics division is now divided into a Vinyls cluster, including PVC production and compounding, and the Industrial Films and Pipelife businesses. Altogether, this cluster returned sales of EUR 2.3 bn in 2004, up 16% on 2003. The second grouping is Specialty Polymers and Inergy, with an 8% rise in sales to EUR 1.3 bn. Earnings in both clusters rose.

• e-Service:
Detailed Solvay presentation on full year 2004 as PDF document (502 KB)
Solvay presentation charts on full year 2004 as PDF document (1,314 KB)