Second quarter 2017 results
Net sales totaled €3.0 billion, up 11%, with 8.1% from volume and mix, and 2.8% from price.
Underlying EBITDA grew 18% to €705 million, mostly driven by volume growth across each operating segment. This included a one-time €38 million synergy benefit on post-retirement obligations. Overall, the EBITDA margin reached a record 23%. Operational excellence measures partly offset higher fixed costs.
– Advanced Materials: €356 million, up 22% year on year with strong volume growth in automotive and improvement in aerospace composites; both are benefiting from sustainable mobility drivers.
– Advanced Formulations: €130 million, up 5% year on year due to an improvement in oil & gas and continued growth in agro.
– Performance Chemicals: €190 million, up 1% year on year supported by the Sadara HPPO contract.
– Functional Polymers: €82 million, up 57% year on year driven by robust net pricing and continued automotive demand.
– Corporate & Business Services: €(53) million versus €(58) million in the second quarter of 2016.
Profit attributable to Solvay share on an IFRS basis was €378 million. On an underlying basis it was €309 million, up 38% from €223 million in 2016, reflecting higher earnings and lower financial charges.
Free cash flow from continuing operations was €85 million.
First half 2017 results
Net sales totaled €6.0 billion, up 11%, fueled by volume growth and aided by positive currency effects and price increases.
Underlying EBITDA grew 15% to €1,321 million, reflecting volume growth across each of the operating segments and the €38 million one-time gain. Operational excellence measures more than offset variable net pricing headwinds, while one-time gains mitigated increased fixed costs. The underlying EBITDA margin grew 0.8 percentage points to 22%.
Profit attributable to Solvay share on an IFRS basis was €613 million. On an underlying basis it grew 36% to €565 million, reflecting higher earnings and lower financial charges.
Free cash flow from continuing operations doubled to €245 million, from €123 million in the same period in 2016.
Underlying net debt1 decreased to €(5.7) billion from €(6.6) billion at the start of the year, following the completion of divestments, such as Acetow. Net debt on an IFRS basis was €(3.5) billion.
CEO Jean-Pierre Clamadieu’s comment
“In the second quarter, we continued to deliver volume growth across all segments, which contributed to strong earnings and cash generation. Our delivery is consistent with our mid-term financial and extra-financial objectives. Solvay’s strategic transformation progressed with further portfolio upgrades.”
