Solvay: first-half sales

Solvay SA confirmed on 30 July 2009 that its full-year operating result will be lower than in 2008 after second-quarter net profit dropped 39% due to the low demand for its plastics and chemicals unit…

Solvay SA confirmed on 30 July 2009 that its full-year operating result will be lower than in 2008 after second-quarter net profit dropped 39% due to the low demand for its plastics and chemicals units. Net income of the Brussels-based chemical and pharmaceutical company decreased to EUR 77 million, from EUR 127 million in the same period of 2008, still beating analysts“ forecasts for EUR 69.2 million, according to estimates. Sales dropped 12% to EUR 2.07 billion, from EUR 2.36 billion. “The chemicals and plastics sector show good resilience thanks to their competitive positions and to the measures taken, but the market conditions remain difficult,” the company said. “Full year operating result of the Group will be lower than last year.” Solvay shares have gained 22% since the beginning of the year, as speculation on a potential sale of the pharma activities has sustained the stock.