SOLVAY
Phasing out of carbon trading and US acquisition hit 2013 operating profit / Advanced materials segment sees growth / Decline in functional polymers
 Solvay is cautiously optimistic heading into 2014 (Photo: Solvay) |
Belgian plastics and chemicals producer Solvay (Brussels; www.solvay.com) has reported a 6% year-on-year fall in recurring operating profit (REBITDA) to EUR 384m for the fourth quarter of 2013.
The company said that, allowing for the phasing out of certified emission reductions, the performance of its guar effects business and the acquisition of US-based chemical company Chemlogics for USD 1.34 bn in October, REBITDA for the quarter would have grown by 8%. Sales in the period were down 5% at EUR 2.42 bn. Full year operating profit dropped by 12% year-on-year to EUR 1.66 bn on sales of EUR 9.94 bn, down 5%.
Operating profit in the company’s advanced materials segment, which includes its speciality polymers business, increased by 18% year-on-year in the fourth quarter to EUR 160m. An improvement in speciality polymers was driven by volume growth and positive pricing, Solvay said. Full year operating profit for the segment increased by 3% to EUR 646m, driven by favourable product mix and pricing.
Fourth quarter sales in the advanced materials segment fell to EUR 603m from EUR 626m in Q4 2012. In the speciality polymers business, sales were down 1% at EUR 308m. The company said this was due to adverse foreign currency effects, particularly related to the Japanese yen. However, volumes grew thanks to strong demand in the healthcare, automotive and consumer goods markets. Full year sales in the segment fell by 7% to EUR 2.55 bn. Speciality polymers accounted for 51% of the segment’s sales over the year, but were down 4% compared with 2012 at EUR 1.29 bn.
The functional polymers segment, which brings together the company’s polyamide and chlorovinyls businesses, recorded an operating profit of EUR 14m in Q4 2013, compared with a loss of EUR 1m in the same period of 2012. However, the segment saw a 10% year-on-year drop in sales in the quarter to EUR 384m, with PA sales falling by 13% year-on-year to EUR 336m, offset slightly by chlorovinyls sales increasing by the same percentage to EUR 48m.
Full year operating profit in the segment fell by 7% year-on-year to EUR 93m on sales down 7% at EUR 1.76 bn. PA sales were 8% lower at EUR 1.56 bn, with chlorovinyls sales up 3% to EUR 206m over the year.
Solvay CEO Jean-Pierre Clamadieu said: “In 2013, Solvay made headway in creating a higher growth, less cyclical and more valuable company, while keeping a healthy balance sheet and generating solid free cash flows. The numerous excellence programs, ranging from manufacturing to innovation and marketing and sales, have started to bear fruit. In 2014, the group will continue its transformation with a specific focus on the completion of initiated projects.”
Looking forward, the company said that some of its end-markets have shown early signs of improvement in 2014 and the group is well-placed to benefit from better macroeconomic conditions. Although it remains cautious, it said that it is confident that the year will show earnings growth supported by the delivery of excellence programmes.
e-Service:
Solvay full year results 2013 as a PDF file
The company said that, allowing for the phasing out of certified emission reductions, the performance of its guar effects business and the acquisition of US-based chemical company Chemlogics for USD 1.34 bn in October, REBITDA for the quarter would have grown by 8%. Sales in the period were down 5% at EUR 2.42 bn. Full year operating profit dropped by 12% year-on-year to EUR 1.66 bn on sales of EUR 9.94 bn, down 5%.
Operating profit in the company’s advanced materials segment, which includes its speciality polymers business, increased by 18% year-on-year in the fourth quarter to EUR 160m. An improvement in speciality polymers was driven by volume growth and positive pricing, Solvay said. Full year operating profit for the segment increased by 3% to EUR 646m, driven by favourable product mix and pricing.
Fourth quarter sales in the advanced materials segment fell to EUR 603m from EUR 626m in Q4 2012. In the speciality polymers business, sales were down 1% at EUR 308m. The company said this was due to adverse foreign currency effects, particularly related to the Japanese yen. However, volumes grew thanks to strong demand in the healthcare, automotive and consumer goods markets. Full year sales in the segment fell by 7% to EUR 2.55 bn. Speciality polymers accounted for 51% of the segment’s sales over the year, but were down 4% compared with 2012 at EUR 1.29 bn.
The functional polymers segment, which brings together the company’s polyamide and chlorovinyls businesses, recorded an operating profit of EUR 14m in Q4 2013, compared with a loss of EUR 1m in the same period of 2012. However, the segment saw a 10% year-on-year drop in sales in the quarter to EUR 384m, with PA sales falling by 13% year-on-year to EUR 336m, offset slightly by chlorovinyls sales increasing by the same percentage to EUR 48m.
Full year operating profit in the segment fell by 7% year-on-year to EUR 93m on sales down 7% at EUR 1.76 bn. PA sales were 8% lower at EUR 1.56 bn, with chlorovinyls sales up 3% to EUR 206m over the year.
Solvay CEO Jean-Pierre Clamadieu said: “In 2013, Solvay made headway in creating a higher growth, less cyclical and more valuable company, while keeping a healthy balance sheet and generating solid free cash flows. The numerous excellence programs, ranging from manufacturing to innovation and marketing and sales, have started to bear fruit. In 2014, the group will continue its transformation with a specific focus on the completion of initiated projects.”
Looking forward, the company said that some of its end-markets have shown early signs of improvement in 2014 and the group is well-placed to benefit from better macroeconomic conditions. Although it remains cautious, it said that it is confident that the year will show earnings growth supported by the delivery of excellence programmes.
e-Service:
Solvay full year results 2013 as a PDF file
27.02.2014 Plasteurope.com [227668-0]
Published on 27.02.2014
German version of this article...