Solvay: Third Quarter 2011 Results
Solvay realized good results in the 3rd quarter. Sales amounted to EUR 5 020 million, up by 13%. REBITDA amounted to EUR 853 million, up by 22%. The margin - REBITDA on sales - reached 17%, improved in comparison to the first nine months of 2010 (16%). REBIT amounted to EUR 594 million, up by 39%.
Sales from Specialty Polymers continued to improve in the third quarter of 2011; sales were 3% higher than the very high level attained last year, and this despite the negative impact of exchange rates. REBITDA amounted to EUR 93 million, up by 29% compared to the third quarter of 2010. The margin – REBITDA on sales – amounted to 31% compared to 24% in the third quarter of 2010. The improvement in product mix resulted from significant research and innovation efforts in order to develop new applications with high value added. It should be noted in this regard that the portfolio of applications currently being developed is very promising; it includes more than 1,300 active projects and should generate EUR 240 million of additional sales over 3 years.
Sales for Vinyls amounted to EUR 615 million, up by 6% compared to the third quarter of 2010 thanks to the overall higher price level for PVC and caustic soda. However, sales are lower than those in the preceding quarter, mainly due to the drop in PVC sales in Europe. Aside from the typical seasonal effect during the summer, the PVC market has globally been impacted by a slowdown in demand in the current context of economic uncertainty and inventory depletion of customers. REBITDA amounted to EUR 60 million, down by 5% compared to the third quarter of 2010. The margin – REBITDA on sales – amounted to 10%. The drop in operating result came from Vinyls Europe; aside from a slowdown in demand, the operating performance of this activity was impacted by the higher cost of ethylene and electricity. The operating result of Solvay Indupa (Vinyls South America) was higher than last year; it was, however, impacted by the planned turnaround of the pro¬duction unit located in Argentina and by the sharp drop in PVC prices due to increased international competition in Latin America. The operating performance of Vinythai (Vinyls Asia), higher than last year, remained very good in the third quarter.
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