|Net sales||Underlying EBITDA
||Underlying Net income (Group share)
|€10.1 billion||€2.23 billion||€939 million|
Underlying basic EPS
|YoY evolution (%)|
- Strong organic volume growth contributed to 7.5% underlying EBITDA increase for full year 2017
- Underlying EPS from continuing operations up 26% in 2017
- Sustained cash generation of €871 million in the year, with a 19% increase in continuing operations
- Full year dividend recommendation of €3.60 per share, 4.3% up
Fourth quarter 2017 results
Net sales totaled €2.5 billion, up 2% versus the fourth quarter of 2016, as the strong volume increase of 8% was partly offset by the negative foreign exchange impact on conversion.
Underlying EBITDA grew 2.8% to €494 million. On a constant scope and forex conversion basis, the underlying EBITDA rose 9.4%, reflecting volume growth in each segment more than offsetting cost increases. Adverse foreign exchange had a -5% effect on conversion. The underlying EBITDA margin reached 20%, consistent with the prior year quarter.
Advanced Materials at €260 million, stable versus a strong quarter last year, with volume growth in automotive, aerospace and electronics offset by forex;
Advanced Formulations at €138 million, up 11% year on year mainly driven by strong volume growth in shale oil & gas;
Performance Chemicals at €170 million, flat year-on-year with volume growth in soda ash and peroxides mostly offset by higher energy costs.
Full year 2017 results
- Advanced Materials at €1,202 million, an 8% increase mainly from growing demand for high-performance polymers in automotive and smart devices, while composites sales to aero ended the year slightly up;
- Advanced Formulations at €524 million, up 8%, supported predominantly by the North American shale oil and gas market recovery;
- Performance Chemicals at €749 million, up 4% on strong soda ash demand, eroded partly by negative net pricing.
At constant scope and relative to average 2017 forex levels, Solvay expects full year underlying EBITDA to grow 5% to 7% organically.
Advanced Materials to grow by double-digits, driven by broad-based demand expansion in its key end-markets, including aerospace, automotive, electronics, batteries and healthcare, and supported by operational excellence;
Advanced Formulations to grow at a high single-digit, driven by increased demand in mining, and some further improvement in oil and gas, and positive net pricing;
Performance Chemicals profitability to decrease around €(50) million, as current higher energy prices are expected to weigh on soda ash margins, partly offset by excellence and growth in peroxides.
Quote of the CEO, Jean-Pierre Clamadieu
Solvay is an advanced materials and specialty chemicals company, committed to developing chemistry that address key societal challenges. Solvay innovates and partners with customers worldwide in many diverse end markets. Its products are used in planes, cars, batteries, smart and medical devices, as well as in mineral and oil and gas extraction, enhancing efficiency and sustainability. Its lightweighting materials promote cleaner mobility, its formulations optimize the use of resources and its performance chemicals improve air and water quality. Solvay is headquartered in Brussels with around 24,500 employees in 61 countries. Net sales were €10.1 billion in 2017, with 90% from activities where Solvay ranks among the world’s top 3 leaders, resulting in an EBITDA margin of 22%. Solvay SA (SOLB.BE) is listed on Euronext Brussels and Paris (Bloomberg: SOLB.BB- Reuters: SOLB.BR) and in the United States its shares (SOLVY) are traded through a level-1 ADR program.