Solvay’s Q3 profits fall 68% on investment losses

30 October 2008 08:07  [Source: ICIS news]

SINGAPORE (ICIS news)--Belgian chemical group Solvay has posted a 68% year-on-year decline in third-quarter net profits to €75m ($58.5m), hit by huge losses from its investments in Fortis bank, the company said on Thursday.

 

The company was hit by €256m in losses, reversing a €9m gain last year, those losses eclipsing the 4% rise in quarterly sales to €2.49bn, it added.

 

Solvay said its operating earnings in the three months to September were down 6%. Recurrent earnings before interest and tax (REBIT) for the period stood at €292m, from €309m a year earlier.

 

Solvay said operating results at its chemicals business slumped 19% year on year in the period to €71m and down a bigger 25% in the first nine months of the year to €206m.

 

“The operating results of Solvay group for the year 2008 will remain at a sustained level but will not reach the record results of the year 2007,” the company said.

 

Due to its near collapse, Fortis was partially nationalised by the Benelux governments last month, with the Belgium investing €4.7bn, the Netherlands investing €4bn and Luxembourg investing €2.5bn.

 

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By: Pearl Bantillo
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