BRUSSELS, July 31, 2002 (PRIMEZONE) -- Net current earning for the first half of 2002, EUR 240 million, was up 15% compared to the results of the first half of 2001, despite a difficult world economic environment.
The Group's first half 2002 EBIT improved by 22% from that of the first half of 2001 although sales fell 9%. These trends resulted, among other, from changes in the make-up of the consolidated group flowing from the major strategic decisions carried out by the Group in 2001 (the Ausimont acquisition, the agreements with BP, etc.), which led to a strong improvement in the quality of the Group's portfolio of businesses. This translated into an Improvement in the Group's EBIT as a percentage of sales, going from 7% in the first half of 2001 to 9.4% in the first half of 2002.
At a sector level, the Pharmaceuticals and Plastics Sectors registered strong EBIT growth from the first half of 2001, up 63% and 118% respectively. The Processing Sector improved 23%. Results of the Chemicals Sector declined 24% compared to the very high level attained in the first half of 2001.
The outlook for the Group's results for the full year 2002 remains consistent with the trends announced. For the whole of the 2002 fiscal year, Solvay should record double-digit growth in profits.
Solvay will publish its 2002 results on February 11, 2003 as well as quarterly results beginning in 2003. To obtain further information, contact Solvay Investor Relations, Telephone. 32-2-509.60.16, Fax: 32-2-509.72.40; email: investor.relations@solvay.com, Website: www.solvay-investors.com
SOLVAY GROUP - CONSOLIDATED FINANCIAL INFORMATION(1)
In In
millions millions
of of
EUR USD(2)
------------------------ ----------
First Half First Half
------------------------ ----------
2001 2002 2002/2001 2002
Sales 4,459 4,045 -9% 4,035
EBIT(3) 311 379 +22% 378
Net debt expense -45 -35 -22% -35
Current taxes -58 -88 +52% -88
Share in earnings of
polyethylene(3) -- -16 n.s. -16
Net current earnings (4) 208 240 +15% 239
Net extraordinary items 0 0 n.s. 0
Net earnings 208 240 +15% 239
Depreciation and
amortization 234 305 +30% 304
Cash flow 442 545 +23% 544
Per share
(after amortization
of goodwill)
Net current earnings(4) 2.45 2.73 +11% 2.72
Net earnings 2.45 2.73 +11% 2.72
Cash flow 5.17 6.29 +22% 6.27
Number of shares (000) 84,376 84,580 n.s. n.s.
(1) Figures subjected to "limited review" by external auditors
Deloitte & Touche.
(2) 1 EUR = 0.9975 USD (at June 30, 2002).
(3) The high density polyethylene results for the first half of
2001 were a negative EUR 17 million included at the EBIT
level.
(4) It should be noted that the goodwill associated with the
acquisitions of Ausimont and BP's specialty polymers
business was accounted for by deduction from shareholders'
equity, so that these results do not reflect any
amortization of that goodwill.
This release can be viewed in its entirety at: http://www.primezone.com/media/temp_nr/solvaygrp.pdf