All references to year-on-year evolution must be understood on a pro forma basis for 2011, as if the acquisition of Rhodia had become effective from the 1st of January 2011. On a pro forma basis Solvay 2011 historical figures have been restated in order to have harmonized accounting policies among the two former Groups, policies that are to be used by the new Solvay going forward. Pro forma results exclude impacts from i) purchase price allocation entries; ii) non-recurring acquisition costs related to the Rhodia transaction and iii) financial revenues on cash deposits and investments.
Significant recovery in activity levels compared to previous quarter
Significant recovery in activity levels compared to previous quarter.
REBITDA at EUR 523 million, a 47% increase versus the 4th quarter of 2011, (9)% down versus 1st quarter 2011
- Net sales at EUR 3,239 million up 8% versus 4th quarter 2011 and 3% versus 1st quarter 2011.
Prices up 4% and volumes down by 3% year-on-year
- Sustained strong performance in Specialty Polymers and Consumer Chemicals, both versus Q4 and versus Q1 2011
- Essential Chemicals performed very well
- Important activity recovery compared to preceding quarter, particularly for the most cycle sensitive businesses (Vinyls and Polyamide Materials’ volumes up over 10%)
- REBITDA1 at EUR 523 million compared with EUR 355 million in the 4th quarter 2011 and with EUR 574 million of last year’s highly demanding reference
- Margin pressure on Vinyls and Polyamide continued
- Adjusted2 Net Income of EUR 125 million (IFRS Net Income of EUR 65 million)
- Free Cash Flow of EUR 52 million and Net Debt of EUR 1.8 billion
1. REBITDA: operating results before depreciation and amortization, non-recurring items, financial charges and income taxes.
2. Adjusted performance indicators exclude Purchase Price Allocation (PPA) non-cash accounting impacts related to the Rhodia acquisition.
Quote of the CEO
Our first quarter’s performance continued to prove the global resilience of Solvay’s portfolio.
The Group benefited from a notable recovery across businesses and geographies compared to the weak level of activity suffered at the end of past year. In the current macro-economic context where visibility is still limited, the Group will continue to operate a strict financial discipline with a strong focus on cash and priority given to businesses identified as “growth engines”.
Strength in business growth engines should continue whilst in its most cycle-sensitive businesses the Group foresees challenging market conditions globally to remain through the year. Solvay is confident in the success of the ongoing integration and of the numerous operational excellence initiatives that represent important competitive advantages going forward. The first important cost efficiencies should be attained already in the current year. In this context, Solvay expects to achieve a full-year REBITDA similar to the strong 2011 pro forma level.