2017 Third Quarter Earnings Highlights

Growing volume in all business segments

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Strong volume growth helped to offset an increase in costs and adverse foreign exchange impacts. Our portfolio is upgraded, is simpler, is poised for superior growth over time and is focused on three segments.

Q3 2017 Underlying results

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Advanced Materials delivered growth from demand for high-performance polymers across its diversified markets, including automotive, batteries, and smart devices.  Composites, however, saw stable volumes in aeronautics and lower volumes in industrial applications.

  • Specialty Polymers: Continued demand for energy-efficiency in the automotive sector & improved demand for smart device applications. Growing markets include medical applications, water purification, 3Dprinting and thermoplastic composites.

  • Silica: Sales stable overall, with demand from the energy efficient tire market growing. 

  • Composite Materials: Low demand for industrial composites weighed on the business. Sales to the aeronautics sector stable, with the production ramp-up of the F-35 and the LEAP engine gaining speed.

  •  Special Chem: New contracts for semiconductor cleaning agents offset lower demand for rare earth formulations used in auto catalysis sector.


Advanced Formulations delivered strong growth with continued recovery in North American oil & gas, while volumes grew for Technology Solution’s polymer additives and specialties. Excellence initiatives supported margins against higher raw material prices.

  • Novecare: Prices were up overall, with the successful pass-through of some raw material price increases.

  • Aroma Performance: Sales grew slightly on volumes with increased demand for vanillin aroma ingredients from the Flavors and Fragrances industry.

  • Technology Solutions: Sales volumes were well up, with solid demand on the phosphines and polymer additive markets.


Performance Chemicals delivered volume growth in soda ash and the new peroxide plant in Saudi Arabia but this did not compensate for increased energy costs.
  • Soda Ash & Derivatives: Sales remained strong, due to increased demand in the seaborne market. Prices have been slightly down since the start of the year. 

  • Peroxides: Sales growth reflects the continuing supply contract for the new HPPO plant in Saudi Arabia.

  • Coatis: Sales up thanks to higher prices, more than compensating raw material price increases. Volumes improved as the domestic Latin American market recovered.

Outlook

Solvay reaffirms its full year outlook for underlying EBITDA to grow in the range of 6% to 8%, and expects to generate more than € 800 million of free cash flow.