Solvay chems and plastics beat expectations - UBS

08 May 2007 16:55  [Source: ICIS news]

LONDON (ICIS news)--Solvay’s first quarter earnings came in at 10% above market consensus due to stronger-than-expected profits in chemicals and plastics, UBS said in a note to investors on Tuesday.

 

Solvay reported first quarter recurring earnings before interest and tax (REBIT) of €325m ($441m), 11% higher than a year earlier on flat sales.

 

Chemicals and plastics earnings came in at 13% and 9% above UBS estimates respectively, driven by higher margins.

 

The chemicals margin expanded 60 basis points year-on-year on flat sales, due to better caustic soda and hydrogen peroxide spreads, while PVC drove plastics margins up 90 basis points.

 

UBS said that although Solvay’s stock did not look expensive it lacked sufficient catalysts to inspire investors at this point.

 

“Within pharma hybrid space we see more value in Akzo and Bayer,” the bank added.

 

($1 = €0.74) 

ICIS Copyright © Reed Business Information 2009

Author: Mark Watts
+44 20 8652 3214

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