Turnover rises 3% at Solvay Deutschland

07 April 1994 00:00  [Source: ICB]

SOLVAY DEUTSCHLAND GmbH increased turnover by an estimated 2-3% in the first five months due in part to divestments. It said earnings improved 'considerably' but were 'not yet satisfactory'.

The company claimed pressure on soda ash, due to the recession in the glass industry coupled with a rise in cheap imports, could push German volume sales of the commodity down to around 300 000 tonne compared with 520 000 tonne in 1992 and reduce operating profit by some DM40m ($25m).

Solvay continues to be plagued by overcapacities and substantial price declines for peroxides and plastics. At the end of 1994, plans are to start up a 50 000 tonne/year hydrogen peroxide plant at Bernburg in eastern Germany and close a unit near Munich.

In 1993, Solvay and non-consolidated group companies lifted sales 8% to DM2.9bn, consolidated turnover rose by the same margin to DM3.5bn. Net earnings rose to DM35.8m after a loss of DM103m in 1992, due to an injection of capital by the Belgian parent company.

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