Solvay posts sound Q1 results exceeding analysts' forecasts

Solvay posts sound Q1 results exceeding analysts' forecasts

	Published : Tue, 08 May 2007 12:43 By : Agencies Print this Story

BRUSSELS (Thomson Financial) - Belgian chemicals and pharmaceuticals group Solvay SA posted sound first quarter results, reflecting a good performance by its industrial businesses, particularly its plastics division.

REBIT (earnings before interest and taxation from ongoing operations) stood at 325 mln eur, ahead of analysts' forecasts of 285-303 mln eur, up from 293 mln last year. Sales were 2.372 bln eur, in the range of analysts' estimates of 2.2370-2.415 bln, up from 2.357 bln last year.

Net profit was 218 mln eur, down 8 pct from 238 mln last year. This exceeded analysts' forecasts of 185-200 mln.

The group said its drop in sales for its pharmaceuticals business to 625 mln eur from 672 mln last year reflected the 'unfavourable impact' of the expiration of Pantoloc marketing rights as well as the effect of the usd/eur exhcange rate on American sales.

Plastics, however, performed well -- rising to 992 mln eur from 933 mln.

'These results were due to continued growth of specialty polymers and strong growth in vinyls cluster,' the group said in a statement.

Sales in chemicals rose slightly to 755 mln eur from 752 mln. The group said the division's performance was due to a 'continued favourable global balance between supply and demand,' at a time when energy costs remained at a very high level.

Minerals and oxygen clusters did particularly well, while electrochemistry and fluorinated products activities were down.

Solvay said: 'Our strategy of sustainable and profitable growth as well as the enrichment of the portfolio of activities and continued efforts to improve competitiveness are positioning us favourably.'

The group said it is 'confident' it can achieve the excellent operating results of last year in 2007.

nina.chestney@thomson.com

nc/bsd

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.