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BRUSSELS (Reuters) -- Belgian chemicals
and plastics maker Solvay on Tuesday targeted more savings of up to 120 million
euros and said profit should improve in 2010 with an industry-wide recovery.
The company posted first-quarter recurring earnings before interest and tax
(REBIT) from its chemicals and plastics operations of 115 million euros, up 80
percent and matching the average forecast in a Reuters poll. Solvay said sales
grew significantly in specialties cluster and pointed to global economic
improvement, particularly in Asia, echoing specialty peers Arkema and
Lanxess.
"These are strong results. We were a little afraid on the chemicals unit due
to lower soda ash prices, but Solvay seems to have made some additional cost
savings following on the measures taken in 2009," Rabo Securities analyst Fabian
Smeets said. Solvay said if rising demand so far in 2010 continued, the
chemicals business should report REBIT over 2010 in line with 2009, despite
declines in its prices. At plastics, the company said volume growth should
support an increase in REBIT.
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