Solvay Beat Expectations With Rising Profit, Revenue in Third Quarter

By Ed Frankl

Solvay SA said Thursday that profit and revenue rose in the third quarter as it beat expectations, despite rising pressures from raw-material and energy prices.

The Belgian chemicals company posted net profit of 273 million euros ($316.7 million) in the three months ended September, compared with EUR176 million in the year-earlier period.

Sales jumped 22% to EUR2.57 billion as volumes continued to recover from pandemic-inflicted lows, driven by its automotive, electronics and building sectors, the Brussels-based company said.

Both figures topped expectations--of EUR234 million for net profit and sales of EUR2.41 billion --according to analysts' estimates compiled by the company.

Increasing inflationary pressures from rising raw-materials, energy and logistics costs affected earnings by EUR145 million, Solvay said.

Further actions are being implemented to account for the rising raw-materials, energy and logistics costs, Chief Executive Ilham Kadri said.

Earnings before interest, taxes, depreciation and amortization were EUR599 million, up 27%, on higher sales volumes, offset partially by scope and foreign-exchange headwinds, the company said.

Solvay kept its full-year Ebitda guidance of EUR2.2 billion to EUR2.3 billion despite expecting high energy prices to persist into the fourth quarter. It now anticipates free cash flow higher, at EUR800 million from EUR750 million previously.

It also launched a new commitment to carbon neutrality before 2050.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

October 28, 2021 01:20 ET (05:20 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.