Belgium's Solvay Q3 net profit surges to €73m on higher prices

27 October 2011 07:35  [Source: ICIS news]

SINGAPORE (ICIS)--Belgian producer Solvay on Thursday reported a net profit of €73m ($101.4m) in the third quarter of this year, up more than seven-fold from €10m in the same period a year earlier, as higher sales prices compensated for the rise in energy costs.

The firm’s sales rose by 5.16% year on year to €1.63bn during the July-September period, Solvay said in a statement.

Its earnings before interest and taxes (EBIT) surged by more than six times to €148m during the third quarter, up from a gain of €23m in the corresponding period last year, the company said.

“Overall level of activity sustained despite a gradual slowdown in demand for vinyls and special chemicals,” the company said.

For the nine-month period ending September this year, the firm’s net income plunged to €270m from €1.78bn in the same period a year earlier, it said.

The company’s sales rose by 12.8% to €5.02bn during the January-September period, as its EBIT nearly tripled to €563m from a gain of €193m in the corresponding period a year earlier, the company said.

“Despite the current softening in some of its markets, Solvay expects as foreseen to improve its operating result both in chemicals and in plastics in 2011,” the company added.

($1 = €0.72)

By: Nurluqman Suratman

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