Solvay net profit and sales fall

Solvay SA said Thursday that net profit and sales fell in the third quarter as lower demand, lower volumes and foreign exchange affected its business.

The Belgian chemical company posted a net profit of 176 million euros ($206.3 million) for the quarter, down from EUR304 million the year prior.

Earnings before interest, taxes, depreciation and amortization–one of the company’s preferred metrics–came in at EUR473 million for the quarter down from EUR601 million the previous year.

Net sales for the period were EUR2.10 billion, a decline from EUR2.58 billion in the third quarter of 2019.

For 2020, Solvay said it expects underlying Ebitda between EUR1.89 billion and EUR1.97 billion, and revised its free cash flow guidance upward, saying it expects a 50% improvement in the metric relative to last year, having previously guided for a similar free-cash-flow generation to 2019. It now expects around EUR900 million in free cash flow for 2020.

The company added that it has reached agreements to sell interests in its sodium-chlorate business and related assets in Portugal, in fluorine chemicals including its Korea site, and in its process materials product line.

Cecilia Butini

source:marketwatch.com