CEO Jean-Pierre Clamadieu comments on results:
"Solvay delivered solid full-year EBITDA growth supported by our transformation and subsequent improvement of our customer profile. Our pursuit of operational excellence, swift delivery of synergies and continued pricing momentum have contributed strongly to our performance. The upgrade of our portfolio has also enabled us to significantly lower our greenhouse gas intensity. Overall, these elements combine to enhance our sustainable value creation for both customers and shareholders." Jean-Pierre Clamadieu, Chairman of the Executive Committee and CEO
Solid Financial performance in 2016
Solvay has strongly improved Solvay’s operational profit last year, with a 7.5% growth in underlying EBITDA. The Group's Free Cash Flow was particularly solid also. The quality in the form of pricing power, the delivery in the excellence programs and the high synergies from the integration of Cytec are the key components of these results. These factors contributed to a record EBITDA margin of 21% for the full year.
Full Year 2016 Underlying results
* including 1 fatality at Roha (India) in Q1 2016
Full Year 2016 underlying EBITDA by segment (in € million)
Strong volume growth in automotive & healthcare markets, more than offsetting lower smart devices and aerospace markets.
Specialty Polymers: strong volumes in diverse applications such as in consumer goods, batteries, automotive and medical sectors more than offset lower demand in smart devices sector.
Silica: volume growth across regions in the energy-efficient tire market was largely offset by the devaluation of the bolivar in Venezuela.
Composite Materials: sales volume affected by the anticipated rate declines of older aircraft programs and reduced sales to industrial markets.
Special Chemicals: good demand for automotive catalysts and growth from the semi-conductor market.
Growth from industrial and agro markets with sequential improvement in oil & gas.
Novecare: sales affected by the decline in the oil and gas market, which started to improve toward year end. Good growth in its other markets, including home & personal care, agro, coatings and industrial applications.
Aroma Performance: sales benefited from volume growth from the new Chinese vanillin plant but were offset by competitive price pressures.
Technology Solutions: growth sales thanks to phosphorous & phosphine chemicals, which mitigated the lower demand in mining where some customers reduced operating sales.
Operational excellence, in combination with lower raw material & energy costs, supported performance
Soda Ash & Derivatives: volumes similar to 2015. Higher bicarbonate sales, supported by the ramp-up of the new plant in Thailand, offset slightly lower volumes of soda ash, linked to slower market demand at the start of 2016.
Peroxides: the ramp-up of the new plant in China supported volume growth in the traditional wood pulp bleaching market, offsetting weaker sales in specialties. Overall sales were down due to mix effects.
Coatis: sales for the year fell as the conditions in its domestic Latin American market remained difficult.
Solid demand for polyamide intermediates, polymers, and engineered products, complemented by positive contribution from RusVinyl.
Decrease in raw material costs, which was partially passed on to customers. Volumes rose 3.5% thanks to the favorable market conditions for polyamides, both upstream and downstream.
The (1.4)% foreign exchange fluctuations on conversion came from the Euro’s appreciation versus local currencies in Brazil and Korea, where Solvay operates major sites.