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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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