07 May 2012 18:45 [Source: ICIS news]
LONDON (ICIS)--Solvay’s first-quarter net income fell 34% year on year to €65m ($86m), despite a rise in sales, after the company incurred costs relating to the Rhodia acquisition, it said on Monday.
The Belgian producer’s first-quarter net income was reported in accordance with the International Financial Reporting Standards (IFRS).
Solvay’s first-quarter net sales on an IFRS basis rose sharply to €3.24bn ($4.26bn) from €1.66bn in the same period a year earlier, as a 4% increase in selling prices offset a 3% year-on-year fall in volumes.
The company said it witnessed sustained strong performance in its Specialty Polymers and Consumer Chemicals businesses compared with the first quarter of 2011, adding that its Essential Chemicals segment also performed well. Solvay also saw volume recovery in its Vinyls and Polyamide Materials’ businesses during the quarter.
“The group benefited from a notable recovery across businesses and geographies compared to the weak level of activity suffered at the end of past year,” Solvay said.
“In the current macro-economic context where visibility is still limited, the group will continue to operate a strict financial discipline with a strong focus on cash and priority given to businesses identified as ‘growth engines’,” it added.
The company’s recurring earnings before interest, taxes, depreciation and amortisation (REBITDA) on an IFRS basis rose by 84% year on year to €523m in the first quarter of 2012, the company said.
Solvay acquired France-based specialty chemical firm Rhodia for €3.4bn in August 2011.
Looking ahead, Solvay said that it foresees challenging market conditions globally to remain through the year.
“Solvay is confident in the success of the ongoing integration and of the numerous operational excellence initiatives that represent important competitive advantages going forward,” it said.
($1 = €0.76)
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