- Full year sales and underlying EBITDA grew organically by +5.7% and +5.3% respectively, driven by higher volumes in each operating segment and sustained net pricing. Including adverse forex and scope effects, total underlying EBITDA was stable.
- EBITDA margin sustained at 22%.
- Full year EBITDA grew +3.1% organically, driven by volume growth in automotive, aerospace, and healthcare markets.
- Growth was partially offset by anticipated volume decreases in smart devices, diesel automotive catalysts and insulation markets.
- Full year EBITDA grew +8.1% organically, led by strong volume growth in the shale oil & gas stimulation market through the first six months, followed by a significant decline in fourth quarter.
- Pricing power and increased volumes across markets supported growth in the year.
- Full year organic EBITDA grew +1.6% as a result of strong performance in peroxides and favorable market conditions in Brazil, supporting volumes and pricing.
- Solid demand and improving soda ash prices limited margin erosion.
- The -17% reduction in net financial charges reflected deleveraging and continued optimization of Solvay's capital structure.
- Underlying tax rate was -1.4 percentage points lower at 26% for the year.
- Total underlying EPS  of €10.57 increased +16% versus 2017 primarily driven by the reduction in financial charges.
- Fourth quarter sales grew organically by +4.3% driven mainly by pricing. Volume growth in aerospace composites as well as in peroxides was partly offset by the anticipated drop in smart devices as well as the significant decline in the shale oil and gas market. Automotive sales remained supportive but signs of weakening were observed toward the end of the year.
- Fourth quarter underlying EBITDA grew +3.6% organically, with higher prices not fully offsetting an increase in variable costs.
- Strong cash generation in the fourth quarter, leading to total year free cash flow from continued operations of €830 million, up +6.1% vs 2017.
- Free cash flow to Solvay shareholders of €725 million was +56% higher, supported both by the strong cash flow from discontinued operations and by the reduction in financial charges, leading to an operational deleveraging of €353 million of net debt, after dividend payments.
- CFROI was stable at 6.9%, well in the value creation zone, above WACC of 6.5%.
- Total dividend recommended of €3.75 gross per share. This leads to final gross dividend of €2.31 payable on May 23, 2019, following the payment of the interim gross dividend of €1.44 in January.
|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 27,000 employees in 62 countries. Net sales were €10.3 billion in 2018, 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.
|Caroline Jacobs||Victoria Binoche|
|+32 2 264 1530|| +33 1 44 94 86 72 |
|email@example.com||Geoffroy Raskin||Jodi Allen||Bisser Alexandrov|
|+32 2 264 2158||+32 2 264 1540||+1 6098604608||+32 2 264 3687|
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Solvay S.A. via Globenewswire