Solvay Group: 4th quarter and full year 2013 Business Review
Video interview of Jean-Pierre Clamadieu (CEO)
Brussels, February 26, 2014
Q4 Highlights
Group net sales at € 2,417 m, down (5)% yoy, with volumes (1)%, prices (3)%, forex (4)% and scope 3%. Allowing for CER phase out, volumes up by 1%
REBITDA at € 384 m, down (6)% yoy. Allowing for CER phase out, exceptional guar effects and Chemlogics REBITDA up by 8%
Adjusted EBIT at € 131 m (€ 342 m in 2012)
Adjusted Net Income, Group share at € 25 m (€ 198 m in 2012) mainly due to portfolio related non-recurring items
Adjusted EPS at € 0.30 (€ 2.39 in 2012)
FY Highlights
Group net sales at € 9,938 m, down (5)% yoy
REBITDA at € 1,663 m (€ 1,896 m in 2012), overall flat allowing for CER phase out, exceptional guar effects and Chemlogics
Adjusted Net Income, Group share at € 378 m (€ 690 m in 2012) mainly due to portfolio related non-recurring items
Adjusted EPS at € 4.54 ( € 8.37 in 2012)
Strong FCF at € 524 m; net debt decreased by € 23 m to € 1,102 m. € 1,200 m Hybrid financing accounted as equity
Stable dividend proposed compared to 2012: € 3.20 gross per share, € 2.40 net
Portfolio upgrade continuing
Successful integration of Chemlogics and strong start to synergies delivery
Progress with Chlorvinyls divestments in Indupa and Benvic`s PVC compounds as well as the establishment of the European JV with Ineos
Strategic options for Eco-Services being explored
Quote of the CEO
In 2013, Solvay made headway in creating a higher growth, less cyclical and more valuable company, while keeping a healthy balance sheet and generating solid free cash flows. The numerous excellence programs, ranging from manufacturing to innovation and marketing and sales, have started to bear fruit. In 2014, the Group will continue its transformation with a specific focus on the completion of initiated projects.
Outlook
So far into the year some of Solvay`s end markets have shown early signs of improvement and the Group is well-placed to benefit from better macroeconomic conditions. Although Solvay remains cautious, it is confident that 2014 will show REBITDA growth supported by the delivery of excellence programs.
FORENOTE
All references to 2012 Income Statement data are restated for:
- the Group`s new business organization effective as from January 1, 2013;
- the application of IAS 19 revised;
- the Group`s European Chlorovinyls activities planned to be contributed to the JV with Ineos.
The European Chlorovinyls business activities are reflected as "Assets Held For Sale" on the Balance Sheet (in one single line) and as discontinued operations in the Income Statement as required by IFRS.
As from December 31, 2013, Benvic (the PVC compounding business) is reflected in the Balance Sheet as "Assets Held for Sale", but as continued operations in the Income Statement.
Chemlogics is consolidated in the financial statements from November 1, 2013.
Furthermore, Solvay is presenting Adjusted Income Statement performance indicators that exclude non-cash Purchase Price Allocation (PPA) accounting impacts related to the Rhodia acquisition.
As an international chemical group, SOLVAY assists industries in finding and implementing ever more responsible and value-creating solutions. Solvay generates 90% of its net sales in activities where it is among the world`s top three players. It serves many markets, varying from energy and the environment to automotive and aerospace or electricity and electronics, with one goal: to raise the performance of its clients and improve society`s quality of life. The group is headquartered in Brussels, employs about 29,400 people in 55 countries and generated 9.9 billion euros in net sales in 2013. Solvay SA (SOLB.BE) is listed on NYSE Euronext in Brussels and Paris (Bloomberg: SOLB.BB - Reuters: SOLBt.BR).
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Source: Solvay S.A. via GlobeNewswire
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