Solvay: 3rd Quarter 2012 Business Review – Plastics
Solvay Group announced third quarter 2012 results. Solvay Net sales of Specialty Polymers increased by 18% yoy and reached a new record of EUR 359 million in Q3’12. Prices increased by 1% and volumes rose by 9% compared to the same period last year. The 3rd quarter of 2012 benefited also from positive foreign exchange impacts of 7%. During the quarter, the most dynamic end markets were Smart Devices, Oil & Gas and Consumer applications. The Advanced Transportation, Healthcare and Water sectors remained highly resilient. Demand from the Construction and the Automotive industry was lackluster. Numerous operational excellence programs implemented over the year contributed to the results growth. The innovation development pool remains healthy with significant new promising projects to be launched in the following months. Rebitda amounted to EUR 115 million up by 24% compared to the 3rd quarter of 2011. The Rebitda margin on net sales came in at 32%, versus the high level of 31% reached in Q3’11. The profitability of the activities was driven by volume growth, favorable product mix and pricing power through strong alignment with customers’ needs.
Net sales of Vinyls amounted to EUR 635 million, up by 3% compared to the still high level of 3rd quarter 2011. Volumes of PVC and caustic soda rose by 2% while volumes from other co-products went down leading to an overall volume reduction of 2% yoy. In Europe, demand for PVC remained low and volatile as a consequence of important ethylene price movements. In Latin America, production was impacted by reduced ethylene supplies in Argentina but improved slightly in Brazil. In Thailand, Vinythai operated at full capacity. Rebitda amounted to EUR 52 million, a decrease of 13% yoy.
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