Solvay: Strong Growth of the Operating Result for Chemicals and Plastics Activities REBIT for Continuing Activities up by 75% in the 4th Quarter of 2010 (EUR 155 million)
BRUSSELS, Belgium, Feb. 17, 2011--Annual Group sales
amounted to EUR 7,109 million. At constant scope3, they improved by
22% both on an annual basis and in the 4th quarter. Annual sales in
the Chemicals Sector (EUR 3,012 million) improved by 11%; sales
volumes, significantly up (+14%), compensated for the lower sales
prices (-6%). Annual sales in the Plastics Sector (EUR 3,784
million) clearly improved (+33% at constant scope3), especially
thanks to a significant increase in sales volumes in Specialty
Polymers (+36% compared to last year). From a geographic
standpoint, Asia’s contribution to the Group’s total
sales strongly improved, going from 10% in 2009 to 14% in 2010.
The recurring Group operating result (REBIT2-4)
amounted to EUR 633 million in 2010. REBIT for continuing
activities posted very significant improvement compared to last
year, both on a cumulative basis (EUR 602 million, or +94%) and on
a quarterly basis (EUR 155 million in the 4th quarter of 2010, or
+75%). In addition to the strong increase in sales volumes, it
benefited, overall, from significant cost cutting efforts and
energy costs that were under control. It should however be noted
that energy costs rise since a few months.
The Group’s operating margin (REBIT on sales),
excluding the pharmaceuticals activities, was 8.9% in 2010 compared
to 5.4% in 2009; it amounted to 9.4% in the 4th quarter of
2010.
The annual net income of the Group reaches EUR 1,823
million. It benefited from the capital gain realized on the sale of
the pharmaceutical activities (EUR 1.7 billion) and was negatively
impacted by non recurring items for an amount of EUR 328 million.
These non recurring items include impairments of industrial assets,
restructuring charges and the capital gain on the sale of our stake
in Inergy Automotive Systems, as already announced previously. In
addition, a charge of EUR 74 million linked to the reorganization
project “Horizon” was recognized in the 4th quarter.
This explains the level of the 4th quarter net income (EUR 16
million).
The REBITDA2-5 of the Group amounted to EUR
1,051 million. Excluding pharmaceuticals activities, it was up by
46% compared to last year. The Group had a net cash surplus
of EUR 2,902 million at the end of 2010.
On February 16, 2011, the Board of Directors decided to
propose to the General Shareholders’ Assembly of May 10, 2011
payment of a total gross dividend of EUR 3.0667 (EUR 2.3
net) per share, up 4.5% compared to 2009. Based on the closing
price of February 15, 2011 (EUR 78.95), this represents a gross
dividend yield of 3.9% and a net yield of 2.9%. Additionally, it
should be recalled that the Group’s dividend policy consists
of increasing it whenever possible and if possible, not to decrease
it. In line with this policy, the dividend has been increased in
many years, kept stable in others and has never been reduced for 29
years.
To obtain additional information:
Erik De Leye Patrick VERELST
Corporate Press Officer (SOLVAY S.A.) Head of Investor Relations
(SOLVAY S.A.)
Tel: 32 2 509 72 30 Tel: 32 2 509 72 43
E-mail: erik.deleye@solvay.com E-mail:
patrick.verelst@solvay.com
Internet: www.solvaypress.com Internet:
www.solvay-investors.com
Solvay Investor Relations, SOLVAY S.A., Tel. 32-2-509.60.16,
E-mail: investor.relations@solvay.com
SOLVAY is an international industrial Group active in Chemistry. It
offers a broad range of products and solutions that contribute to
improving quality of life. The Group is headquartered in Brussels
and employs about 16,800 people in 40 countries. In 2010, its
consolidated sales amounted to EUR 7,1 billion. Solvay is listed on
the NYSE Euronext stock exchange in Brussels (NYSE Euronext:
SOLB.BE - Bloomberg: SOLB.BB - Reuters: SOLBt.BR). Details are
available at www.solvay.com.
Posted: February 2011
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