The Solvay Group announces its 4th quarter and full year 2013 Business Review
Q4 Highlights
• Group net sales at € 2,417 m, down (5)% yoy, with volumes (1)%, prices (3)%, forex (4)% and scope 3%. Allowing for CER phase out, volumes up by 1%
• REBITDA at € 384 m, down (6)% yoy. Allowing for CER phase out, exceptional guar effects and Chemlogics REBITDA up by 8%
• Advanced Formulations (previously named Consumer Chemicals) at € 87 m, down (16)% yoy;
• Advanced Materials at € 160 m, up 18%;
• Performance Chemicals at € 186 m, up 4%;
• Functional Polymers at € 14 m (€ (1) m in 2012);
• Adjusted EBIT at € 131 m (€ 342 m in 2012)
• Adjusted Net Income, Group share at € 25 m (€ 198 m in 2012) mainly due to portfolio related non-recurring items
• Adjusted EPS at € 0.30 (€ 2.39 in 2012)
FY Highlights
• Group net sales at € 9,938 m, down (5)% yoy
• REBITDA at € 1,663 m (€ 1,896 m in 2012), overall flat allowing for CER phase out, exceptional guar effects and Chemlogics
• Adjusted Net Income, Group share at € 378 m (€ 690 m in 2012) mainly due to portfolio related non-recurring items
• Adjusted EPS at € 4.54 ( € 8.37 in 2012)
• Strong FCF at € 524 m; net debt decreased by € 23 m to € 1,102 m. € 1,200 m Hybrid financing accounted as equity
• Stable dividend proposed compared to 2012: € 3.20 gross per share, € 2.40 net
Portfolio upgrade continuing
• Successful integrationof Chemlogics and strong start to synergies delivery
• Progress with Chlorvinyls divestments in Indupa and Benvic's PVC compounds as well as the establishment of the European JV with Ineos
• Strategic options for Eco-Services being explored
In 2013, Solvay made headway in creating a higher growth, less cyclical and more valuable company, while keeping a healthy balance sheet and generating solid free cash flows. The numerous excellence programs, ranging from manufacturing to innovation and marketing and sales, have started to bear fruit. In 2014, the Group will continue its transformation with a specific focus on the completion of initiated projects.
Outlook
So far into the year some of Solvay's end markets have shown early signs of improvement and the Group is well-placed to benefit from better macroeconomic conditions. Although Solvay remains cautious, it is confident that 2014 will show REBITDA growth supported by the delivery of excellence programs.
