28 July 2011 08:10 [Source: ICIS news]
SINGAPORE (ICIS)--Belgium-based Solvay said on Thursday said that it expects its chemical and plastic businesses to post better operating results this year from 2010, following a strong first-half performance.
In the first six months of 2011, recurring operating profit at its plastics segment surged 60% year on year to €266m, while chemicals segment’s earnings jumped 39% to €191m, the company said in its second-quarter business review.
Sales in the plastics business increased 19% year on year to €1.94bn in the January-to-June 2011 period, while revenue from chemicals operations grew 15% year on year to €1.45bn, Solvay said.
In 2010, Solvay’s chemicals sales increased 11% to €3.01bn in 2010 while sales from its plastics operations increased 27% to €3.78bn.
Meanwhile, Solvay’s overall net profit in the first half of 2011 stood at €197m with sales at €3.39bn, it said.
For the second quarter, its net profit surged to €111m ($159m) from €44m in the same period a year earlier, while sales from continuing operations rose 12% year on year to €1.72bn, the company said.
Solvay's recurring earnings before interest, tax, depreciation and amortisation (REBITDA) from continuing operations in the three months to June increased 12% to €304m, it said.
Sales volumes, meanwhile, rose by 4% year on year in the second quarter, accompanied by an 11% increase in product prices that offset higher energy costs, it said.
“The Solvay group is attentive to the macro-economic developments and the evolution of the energy and ethylene costs,” the company said.
Solvay’s operating margin remained stable at 18% in the second quarter of this year, the company said.
Additional reporting by Pearl Bantillo
($1 = €0.70)
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