Solvay down in Q4 – Pipeline sale announced
By PRW Staff
Posted 16 February 2012
Solvay has reported fourth-quarter figures below market expectations as a result of falling demand for its PVC and polyamide products. Earnings before tax and exceptionals for the period were €355m.
The company blamed stagnation in European markets and floods in Thailand, which badly affecting customers there, although the recently-acquired Rhodia added to the bottom line.
“The first contribution by Rhodia to the group’s quarterly results is substantial,” said incoming chief executive Jean-Pierre Clamadieu. “It confirms the ambition pursued to create a leading chemical player serving highly diversified markets globally, with reduced cyclical exposure.
“With two thirds of its sales in resilient market segments and 40% in fast growing regions, Solvay is well positioned to capture growth opportunities in promising business segments responding to the industry’s undergoing megatrends. Potential cost savings will be an additional source of value creation.”
Brussels-based chemicals giant also announced the sale of 50% of its stake in Pipeline to brick producer Wienerberger. Solvay will receive €172m in cash for the deal.
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