Belgium's Solvay reports net earnings improved year-over-year to €111M as sales volumes rose 4% on sustained overall global activity, prices increased 11%

Liling Tan

BRUSSELS , July 28, 2011 (press release) – REBITDA (EUR 304 million) up by 12% compared to the 2nd quarter of 2010


Increase in sales volume (+4%) reflecting very sustained overall global activity
Higher sales prices (+11%) compensating for rise in energy costs
Operating margin - REBITDA on sales – stable at 18%
Net result of EUR 111 million, greatly improved from last year
Launch of a friendly cash offer for Rhodia on June 15, 2011

Quote of the CEO

The 2nd quarter of 2011 has been excellent for Solvay with demand supporting volume growth of 4% while we achieved prices 11% ahead of the same period last year. Taken together this led to REBITDA and REBIT from continuing operations up by 12% and 27% respectively. We continue to trade in line with our expectations.

Outlook

The Solvay Group is attentive to the macro-economic developments and the evolution of the energy and ethylene costs. In the context of the current business climate and based on its strategy of sustainable and profitable growth, Solvay expects to improve its annual operating result, both in Chemical and Plastic activities in 2011.

Friendly cash offer for Rhodia ongoing

Solvay’s friendly cash offer for Rhodia shares was launched on
June 15th 2011.

The aim is to create with Rhodia a large global chemical company, 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.

The closing date for the offer will be published by the Autorité française des marchés financiers following receipt of approval from the European Commission which is expected on August 5, 2011.

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