Solvay S.A.
Brussels : SOLB

February 16, 2012 01:42 ET

Solvay Group - Solvay's FY 2011 and 4Q11 Results

BRUSSELS, BELGIUM--(Marketwire - Feb 16, 2012) -



                                  SOLVAY GROUP
                SOLVAY'S FULL YEAR 2011 AND 4th QUARTER RESULTS

The business review shown below on pages 4 to 15 is based on pro forma figures. Those pro forma figures show the income statement (1) as if the acquisition of Rhodia had become effective from the 1st of January 2010, (2) harmonizing the accounting rules and (3) eliminating the Purchase Price Allocation (PPA) impacts. The PPA impacts are created by the reevaluation of assets, liabilities and contingent liabilities of Rhodia at fair value at acquisition date (IFRS 3). This pro forma presentation shows the evolution of the economic performance of the Solvay Group on a full year basis in 2011 and on a comparable basis with 2010.

Pro forma 2011: REBITDA of EUR 2 068 million, an improvement in each Sector of activity; Pro forma Free Cash Flow of EUR 656 million

* Overall sustained level of activity with sales volumes up by 3% with constant perimeter

* Strong improvement in REBITDA of 11% to EUR 2 068 million

* Good generation of Free Cash Flow: EUR 656 million on a pro forma basis

4th quarter of 2011: REBITDA of EUR 355 million and Free Cash Flow of EUR 246 Million

* Good overall resilience in sales; significant slowdown in demand for Vinyls in Europe, and to a lesser extent, in Polyamide Materials

* First contribution of Rhodia to REBITDA amounted to EUR 231 million

* Group REBITDA down by 23% on a pro forma basis primarily due to Vinyls in Europe

* Priority given to cash: significant decrease of inventories with a negative impact on result estimated to EUR 50 million; Free Cash Flow generation of EUR 246 million.

* Net result: EUR 122 million

Dividend proposed: EUR 3.0667 gross per share, stable compared to 2010

Quote CEO

The first contribution by Rhodia to the Group's quarterly results is substantial. It confirms the ambition pursued to create a leading chemical player serving highly diversified markets globally, with reduced cyclical exposure. With 2/3 of its sales in resilient market segments and 40% in fast growing regions, Solvay is well positioned to capture growth opportunities in promising business segments responding to the industry's undergoing megatrends. Potential cost savings will be an additional source of value creation.

Outlook

In an uncertain economic environment in Europe and in some segments of the demand, but differentiated from one world region to another, overall market conditions seem to progressively recover. In this context, Solvay emphasizes a stringent operational and financial management. As a major player in chemistry and a global leader in its activities, Solvay enjoys solid competitive advantages. The good progress with Rhodia integration and the deployment of Horizon are essential levers.

Enclosed is the press release announcing Solvay's full year 2011 and fourth quarter 2011 results.

Press release and slides are available on www.solvay.com

Press Release: http://hugin.info/133981/R/1586336/497201.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Solvay S.A. via Thomson Reuters ONE

[HUG#1586336]

Contact Information

  • For additional information
    Erik De Leye
    Corporate Press Officer - Solvay
    Tel: 32 2 264 15 30
    E-mail: Email Contact

    Lamia Narcisse
    Media Relations - Rhodia
    Tel: +33 (0)1 53 56 59 62
    E-mail: Email Contact

    Patrick Verelst
    Head of Investor Relations - Solvay
    Tel: 32 2 264 15 40
    E-mail: Email Contact

    Maria Alcon Hidalgo
    Head of Investor Relations - Rhodia
    Tel: 33 (0)1 53 56 64 89
    E-mail: Email Contact

    Solvay Investor Relations
    E-mail: Email Contact