BRUSSELS, Belgium, March 22, 2002 (PRIMEZONE) -- Results of the Solvay Group (Euronext Brussels:SOLB) (Xetra:SOL) and the parent company, Solvay S.A.
As announced on February 18, 2002, the Solvay Group completed the year 2001 with net current earnings and net income of EUR 403 million, down 7% from the elevated level of 2000 (EUR 433 million). It should be noted that after a first half of 2001 that was down 18% from the first half of 2000, net current earnings in the second half of 2001 were 10% above those of the second half of 2000, primarily thanks to cost control and despite the widely recognized downturn in the world economy.
In 2001 the Group took several significant steps in implementing its strategy for change and will still more benefit from these from 2002 onwards. These steps are aimed at :
-- reinforcement of its leadership position in all activities,
continuously improving their competitiveness and innovation; and
-- more rapid development of the Pharmaceuticals Sector and
Specialties from the other three sectors - Chemicals, Plastics and
Processing.
Among these steps are two major initiatives: the acquisition now underway of Ausimont, a producer of fluorinated specialties, and the conclusion of agreements with BP concerning the acquisition of BP's specialty polymers, the creation of two joint ventures in high density polyethylene between BP and Solvay and the sale of Solvay's polypropylene business to BP.
The net income of the parent company Solvay S.A. amounted to EUR 202 million, up 3% from 2000.
The acquisition of Ausimont now in progress should, according to the expected timetable of the European and American clearances, close in April 2002. As the finalization of the balance sheet is dependent on the conclusion of this acquisition, the publication of the balance sheet is scheduled for the end of April 2002.
Prospects
The Group will benefit in 2002 from the fruits of the strategy it has followed for several years.
The beginning of the year 2002 is still marked by uncertainty concerning the short-term future of the world economy even though the first signs of recovery start to be noticeable for several products.
Results per share
-----------------
(excluding minority EUR/SHARE 2001/2000 USD/SHARE(1)
interests)
2000 2001 (DELTA)% 2001
Net current earnings 5.20 4.72 -9% 4.16
Net income 5.27 4.72 -10% 4.16
Net dividend 1.70 1.70 - 1.50
Gross dividend 2.27 2.27 - 2.00
Cash flow 11.39 10.82 -5% 9.54
Number of shares (000)
- at 31/12 84 365 84 445 (2) n.a. 84 445
(1) EUR 1 = USD 0.8813 (December 31, 2001)
(2) not including 135,000 new shares from the exercise of warrants
that carry a right to the 2001 dividend
Dividend
The Board of Directors has decided to propose to the Annual General Meeting of Shareholders, scheduled for June 6, 2002, the payment of a net dividend of EUR 1.70 per share, unchanged compared to that for the year 2000. Taking into account the interim dividend of EUR 0.70 per share paid on January 10, 2002, the balance, or EUR 1.0 net per share, will be paid on June 13, 2002 (coupon number 70).
The Auditor gave an unqualified opinion on the annual consolidated results and confirmed that the accounting information contained in this release required no commentary on his part and accurately reflects such consolidated results.
FINAL 2001 RESULTS
SOLVAY GROUP - CONSOLIDATED RESULTS
SOLVAY GROUP MEUR 2001 / 2000 MUSD (1)
(EUR)
(including minority 2000 2001 (DELTA)% 2001
interests)
Sales 8 863 8 725 -2% 7 689
Gross margin 2 445 2 444 - 2 154
EBIT 666 628 -6% 553
Net debt expense -83 -90 +8% -79
Current taxes -123 -135 +10% -119
Earnings from
operations accounted -27 - n.a. -
for under the
equity method (2)
Net current earnings 433 403 -7% 355
Net extraordinary items - - - -
Net income 433 403 -7% 355
minority interests -11 +5 n.a. +5
after minority
interests 444 398 -10% 350
Depreciation 551 522 -5% 460
Cash flow (3) 984 925 -6% 815
EBITDA (4) 1217 1150 -6% 1013
Capital Expenditures 812 2627 (5) n.a. 2315
Research and
Development 360 341 -5% 301
(1) 1 EUR = 0.8813 USD (December 31, 2001)
(2) The results of the PP activities were accounted for under the
equity method in 2000 and deconsolidated in 2001.
(3) Cash flow = net income plus depreciation and amortization
(4) EBITDA = EBIT plus depreciation and amortization
(5) Including the acquisition of Ausimont, announced in
December 2001, and the acquisition of BP's specialty polymers
through an exchange of assets
RESULTS BY SECTOR
MEUR Sales EBIT
2000 2001 01/00 2000 2001 01/00
(DELTA)% (DELTA)%
Pharmaceuticals 1 548 1 769 +14% 134 203 +51%
Chemicals 2 585 2 751 +6% 233 286 +23%
Plastics 3 000 2 624 -13% 230 70 -70%
Processing 1 730 1 581 -9% 69 68 -1%
GROUP 8 863 8 725 -2% 666 628 -6%
RESULTS OF THE PARENT COMPANY, SOLVAY S.A.
- SOLVAY S.A. - (MEUR) 2000 2001
Net income for the year 197 202
Transfers to untaxed reserves 0 0
Net earnings available for distribution 197 202
Key dates during the next six months:
End of April 2002: Financial section of the Annual Report on the
Internet
June 6, 2002: Annual General Meeting of Shareholders
July 31, 2002: Release of results for the first half of 2002
To view the presentation of results at today's press conference: www.solvay-investors.com.