Improved operating result in the 3rd quarter
REBITDA (EUR 264 million) improved by 13% compared to the 3rd quarter of 2010
- Favorable pricing power: higher sales prices overall compensated for the increase in energy costs
- Operating margin – REBITDA on sales – rose to 16%
- Overall level of activity sustained despite a gradual slowdown in demand for Vinyls and Special Chemicals
- Net result of EUR 73 million
- Closing of Rhodia acquisition in September1, of which result will be consolidated as from October 2011
- Structured implementation program for the integration of Rhodia and the synergies led by the Integration Committee
- Interim dividend of 0.90 EUR net per share (1.20 EUR gross per share)
1. It was decided to integrate the financial data from the former Rhodia Group in the consolidated accounts of the Solvay Group using the following schedule: (a) Balance sheet: at the end of September 2011 (more information is provided in this regard on pages 22 to 23 of this press release) (b) Results and cash flows: starting October 1, 2011.
The Solvay Group is attentive to the macro-economic deterioration and to the need for tight management of its operations.
Despite the current softening in some of its markets, Solvay expects as foreseen to improve its operating result both in Chemicals and in Plastics in 2011. The previously announced outlook for Rhodia is confirmed (before the accounting impact of purchase price allocation).
Quote of the CEO
Solvay and Rhodia1 realised good results in the 3rd quarter. Thanks to its balanced activity portfolio, its industrial excellence, its permanent focus on competitiveness and its continued conservative financial policy, the new Group is well positioned to leverage the opportunities that will arise.
1. Rhodia’s 3rd quarter results not consolidated in Solvay’s consolidated financial statements.
Total success of Solvay’s recommended tender offer for Rhodia
Given the success of Solvay’s recommended tender offer for Rhodia, the squeeze-out procedure was implemented in September. This acquisition creates a major player in chemicals with global ambitions and committed to sustainable development. The New Solvay will capitalize on its geographic diversification, the quality and balance of its portfolio of activities, its industrial excellence and the solidity of its financial base to fully capture new growth opportunities, especially in high-growth markets.