- Sales and underlying EBITDA grew 6% organically, driven by higher volumes in each operating segment and pricing power.
- Underlying EBITDA fell 1% overall due to forex conversion headwinds and a small reduction in scope.
- Third quarter volume growth was softer in Advanced Materials in specific end-markets.
- EBITDA margin was down slightly at 22%.
- Advanced Materials: €922 million -2% (+3% organically )
- Volume growth continued in polymers and composites technologies for aeronautics, automotive and healthcare.
- Sales dipped in smart devices and fluorinated gases used in insulation, mainly in the third quarter, as anticipated.
- Advanced Formulations: €403 million +4% (+16% organically )
- Volume growth was strong across end-markets, although the growth rate in the North American shale oil & gas market is stabilizing.
- Pricing power more than compensated for higher raw material prices.
- Performance Chemicals: €557 million -4% (+2% organically )
- Solid demand and improving soda ash prices limited margin erosion.
- Peroxides volumes and prices rose in tight market conditions.
- The 19% reduction of net financial charges reflected continued deleveraging and optimization of Solvay's capital structure.
- Underlying tax rate was 2.5 percentage points lower at 25%.
- Free cash flow from continuing operations was lower than in 2017 due to higher working capital needs.
- Free cash flow to Solvay shareholders increased 7% to €271 million on a strong contribution from discontinued operations and lower financial payments.
- Interim dividend of €1.44 gross per share, a 4.3% increase , will be payable on January 17, 2019.
- Under current circumstances, Solvay expects underlying EBITDA to grow organically at around 5% to 6%, within the range of its initial guidance. Free cash flow from continuing operations is still expected above the 2017 level.
|Solvay is an advanced materials and specialty chemicals company, committed to developing chemistry that addresses key societal challenges. Solvay innovates and partners with customers worldwide in many diverse end markets. Its products are used in planes, cars, batteries, smart and medical devices, as well as in mineral and oil and gas extraction, enhancing efficiency and sustainability. Its lightweighting materials promote cleaner mobility, its formulations optimize the use of resources and its performance chemicals improve air and water quality. Solvay is headquartered in Brussels with around 26,800 employees in 61 countries. Net sales were €10.1 billion in 2017, with 90% from activities where Solvay ranks among the world's top 3 leaders, resulting in an EBITDA margin of 22%. Solvay SA (SOLB.BE) is listed on Euronext Brussels and Paris (Bloomberg: SOLB.BB - Reuters: SOLB.BR) and in the United States its shares (SOLVY) are traded through a level-1 ADR program. |
Financial figures take into account the planned divestment of Polyamides.
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Source: Solvay S.A. via Globenewswire