29 July 2016
DETAILS
Q2 2016 results*
- Net income, Solvay share,
on an IFRS basis was
€ 185 m vs € 138 m in 2015.
Underlying net income,
Solvay share, was € 223 m, up 4%,
with the higher operating profit more than offsetting
the end of contributions
from the discontinued European chlorovinyls activities. - Free cash flow was € 174 m
versus € 192 m in Q2 2015.
Free cash flow from continuing operations
was up € 37 m, thanks to higher EBITDA
and stronger focus on cash generation.
Contribution from discontinued operations
was nil, since the European chlorovinyls
was disposed mid 2015. - Underlying EBITDA grew 8% at € 652 m.
EBITDA benefitted from sustained pricing power
of 3%, while foreign exchange had
a (4)% impact on conversion.
The Group also benefitted from
continuous excellence and Cytec synergy delivery.
The underlying EBITDA margin widened
to a record 22% of net sales,
up 2.9 percentage points.
- Advanced Materials at € 293 m,
up 6.3% yoy, thanks to strength
in automotive applications, healthcare and
consumer goods, while the smart devices
market remained subdued;
- Advanced Formulations at € 124 m,
down (11)% yoy, reflecting persistent weakness
in oil & gas;Sub-highlights - Performance Chemicals at € 224 m,
up 20% yoy, thanks to strong volumes
in soda ash, and continued recovery
in acetate tow; - Functional Polymers, at € 64 m,
up 24% yoy, mainly driven by
a higher contribution from RusVinyl; - Corporate & Business Services
at € (53) m, versus € (50) m in Q2 2015.
- Advanced Materials at € 293 m,
- Net debt on an IFRS basis was € (4.8) bn.
Underlying net debt** rose to € (7.0) bn
from € (6.8) bn at the start of the quarter,
following seasonal interest as well as final dividend payments.
The latter includes the perpetual hybrid bonds.
- Net sales totaled € 2,946 m, down (6)%,
as a result of
a (4)% net impact of foreign exchange fluctuations
on conversion and
(2)% price decrease in a context of lower raw material
and energy costs.
Volumes were up by 1%, with solid growth
across segments except Advanced Formulations.
Jean-Pierre Clamadieu
CEO
Solvay delivered strong results in the second quarter,
with underlying EBITDA up 8%
despite continued headwinds in some markets.
This reflects the strength and breadth of the portfolio
and the continued momentum of our excellence programs.
Free cash flow was significantly higher
in the first half of 2016,
in line with our commitment
to convert profits into cash more efficiently.
The integration of Cytec is going very well
with fast delivery on synergies and we are particularly pleased
with our recent award, together with Mubadala,
to supply primary structure composite materials
to Boeing's 777X program.
This represents a strategic milestone for Solvay
and positions us well for long-term growth in a key market.
READ MORE Q2 AND H1 2016 REPORT
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