MOSCOW (MRC) -- The chemicals company Solvay said for the second quarter of 2016, net income, Solvay share, on an IFRS basis was 185 million euros (USD203.1 million) compared with EUR138 million in 2015, as per the company's report.
On an underlying basis, net income, Solvay share, rose 4% to EUR223 million, with the higher operating profit more than offsetting the end of contributions from the discontinued European chlorovinyls activities, the company said.
Solvay however said net sales during the period fell 6% to EUR2.95 billion, as a result of a 4% drop net impact of foreign exchange fluctuations on conversion and a 2% price decrease in a context of lower raw material and energy costs.
"Solvay delivered strong results in the second quarter, with underlying Ebitda up 8% despite continued headwinds in some markets. This reflects the strength and breadth of the portfolio and the continued momentum of our excellence programs," CEO Jean-Pierre Clamadieu said.
Underlying earnings before interest taxes, depreciation and amortization or Ebitda during the period was EUR652 million.
Based on current market conditions, Solvay reaffirmed its full year 2016 guidance of high single-digit underlying Ebitda growth and free cash flow in excess of EUR650 million.
As MRC wrote before, in early June 2016, Solvay completed the purchase of Eastman Chemical Company's share in their former US joint venture Primester. As the sole owner of the cellulose acetate flake plant, Solvay had secured the most economical long term supply for its own tow businesses while adapting capacity to demand. Eastman will provide the long-term supply of basic utilities and raw materials to the Kingsport, Tennessee-based plant.
Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers - fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
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