Belgian chemicals and pharmaceuticals group Solvay said its net profit rose 12% in 1999, led by its pharmaceuticals sector.
The pharmaceutical sector was the best-performing division with a 16% rise …
Belgian chemicals and pharmaceuticals group Solvay said its net profit rose 12% in 1999, led by its pharmaceuticals sector. The pharmaceutical sector was the best-performing division with a 16% rise in earnings before interest and tax, Solvay said. 1999 group net profit rose 12% to Euro 423 million or Euro 5.08 per share compared to Euro 378 million or Euro 4.45 per share a year ago. Earnings before tax and interest (EBIT) rose 7% to Euro 652 million. “It should be noted that the pharmaceuticals sector represented 24% of the group“s EBIT in 1999, compared to 13% in 1995,” Solvay reported in a statement. EBIT in the pharmaceutical sector rose to Euro 157 million. The chemicals sector posted a 9% rise in EBIT to Euro 212 million. In the plastics sector EBIT fell 2% to Euro 200 million. In processing, EBIT rose 11% to Euro 83 million. Solvay said volumes and margins in the plastics sector rose strongly in the second half, after a sharp fall in the first half of 1999. In chemicals, Solvay said the soda ash market remains difficult. “Growth in world demand and efforts to improve productivity will govern the gradual improvement in margins,” Solvay added. The company has set its research and development budget for 2000 at Euro 355 million, of which 66% will be directed to the pharmaceuticals sector. Solvay expects its investment budget in 2000 will rise 14% to Euro 1.05 billion from Euro 920 million in 1999.