Solvay’s third-quarter underlying operating earnings fell to 173 million euros as Middle East disruption and a tougher year-earlier comparison weighed on results. Sales declined more modestly. The Belgian chemical company retained its revised annual earnings and cash flow forecasts, while quarterly free cash flow and net profit also fell.
Solvay reported lower third-quarter underlying operating earnings while maintaining its annual outlook.[1], [2]
Underlying earnings before interest, tax, depreciation and amortisation declined from 232 million euros to 173 million euros, an organic fall of 26.6 per cent. The company’s corresponding margin narrowed from 22.2 per cent to 16.8 per cent. Sales fell 3.3 per cent organically to 1.031 billion euros.[1]
Management put the quarterly earnings impact of the Middle East conflict at approximately 25 million euros. Continued suspension of peroxide production at the Sadara complex in Jubail, Saudi Arabia, accounted for about 15 million euros of that amount. The year-earlier quarter also included approximately 40 million euros from sales of carbon emission rights. Underlying net profit from continuing operations fell from 90 million euros to 35 million euros.[1]
Quarterly free cash flow to shareholders declined from 117 million euros to 54 million euros. Structural savings contributed another 25 million euros during the quarter, bringing the programme’s cumulative total to 283 million euros. Solvay retained its October forecasts of 720–740 million euros in annual underlying earnings before interest, tax, depreciation and amortisation and 120–150 million euros in free cash flow after approximately 90 million euros of transformation expenses.[1]
