Solvay posts forecast-beating rise in FY net profit on higher sales UPDATE |
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Thu, 15 Feb 2007 09:21
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(updates with division breakdown of sales; group comment)BRUSSELS (AFX) - Belgian chemicals and pharmaceuticals group Solvay SA posted a forecast-beating rise in its full year net profit on higher sales.Full year net came in at 791.0 mln eur, up from 789.0 mln last year. The figure exceeded analysts' expectations of 724.0-770.0 mln eur.Sales totaled 9.339 bln eur against 8.562 bln eur in 2005, at the top end of the 9.301-9.349 bln analysts' forecast range.EBIT on ongoing operations was 1.099 bln eur, up from 912.00 mln last year. The figure fell short of analysts' expectations of 1.122-1.466 bln.The company proposed a full-year dividend of 2.10 eur, up 5 pct on last year.Solvay said 2006 was 'another record year' for the group.Full-year results showed the implementation of the group's strategy for 'sustainable and profitable growth' as well as the 'enrichment of the portfolio of activities' and 'continuous efforts to improve competitiveness,' the company said.It added that its pharmaceuticals, chemicals and plastics divisions all showed 'significant improvement'.On the pharmaceutical side, Solvay posted sales of 2.600 bln eur, up from 2.270 bln a year earlier.Solvay said its cost savings programme was implemented more quickly than expected in 2006.The group aims to save 300 mln eur by 2010.On chemicals, sales reached 2.998 bln eur from 2.785 mln; up 8 pct on last year.The company said there was an 'improvement in activities' thanks to 'overall favourable market conditions' even though energy costs continued to rise.In its plastics division, sales increased to 3.800 bln eur from 3.507 bln, representing a rise of 8 pct.The group attributed the rise to an expanded product portfolio, growth in its specialities cluster and a strong performance in vinyls.nina.chestney@thomson.comnc/hjp/nc/jsaCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.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.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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