Belgium's Solvay Q2 net income falls 38%, sales down 4%

31 July 2013 07:18  [Source: ICIS news]

SINGAPORE (ICIS)--Solvay’s second-quarter group net income fell by 38% year on year to €148m ($197m), on 4% lower sales, the Belgian specialty chemical producer said on Wednesday.

Solvay’s second-quarter 2013 net sales fell to €3.06bn from €3.20bn in the same quarter of last year, it said in a statement.

During the three-month period, net sales fell 6% year on year in consumer chemicals, 10% in advanced materials, 2% in functional polymers and were little changed in performance chemicals, the company said.

A 1% volume decline at group level chiefly came from strong destocking in derivatized guar in the Novecare business unit, and persistent sluggish demand for electronics seen since last year’s second half in the rare earth Systems business unit, the company said.

Prices overall declined 2% and foreign exchange evolutions against the euro represented a 1% decline, Solvay said.

“Solvay continued to face challenging trading conditions during the second quarter,” the company said.

“Moreover, temporary destocking in the derivatized guar business and decisions by some of our customers to delay investments, have weighed on several of our ‘growth engines’ businesses,” it added.

Solvay said it is confident in its ability to generate recurring earnings before interest, tax, depreciation and amortisation (REBITDA) for 2013 that are comparable to last year’s level, excluding the impacts of the exceptional pricing of guar and the sale of carbon credits.

In the second quarter, REBITDA fell 14% year on year to €487m, Solvay said.

($1 = €0.75)

By: Tahir Ikram
+65 6780 4359

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