Solvay 4Q Beat Expectations as Higher Pricing Overcame Rising Inflationary Costs
23 February 2022 - 5:29PM
Dow Jones News
By Ed Frankl
Solvay SA said Wednesday that its fourth-quarter earnings and
revenue rose, beating expectations as higher pricing kept up with
rising energy, raw-material and supply-chain costs.
The Belgian chemicals company said net profit in the three
months to the end of December was 250 million euros ($283 million)
compared with EUR96 million in the same period in 2020.
Solvay posted revenue of EUR2.70 billion, up 22% on year, as
increased volumes reflected growing momentum in key markets
including the automotive and electronics sectors, the company
said.
Those results beat expectations of net profit of EUR176 million
and sales of EUR2.52 billion, according to consensus compiled by
the company.
The Brussels-based company said it took an impact of EUR465
million from energy, raw-material and supply-chain cost inflation
in 2021, including EUR260 million in the fourth quarter alone, but
that it was largely offset by an acceleration of price
increases.
Free cash flow in the quarter, however, ticked down to EUR149
million from EUR155 million a year earlier.
Solvay added that it would propose a dividend of EUR3.85 a share
to shareholders, up from EUR3.75 last year.
In its new 2022 guidance, the company said full-year earnings
before interest, taxes, depreciation, and amortization would grow
organically by mid-single digits in the year and free cash flow
would exceed EUR650 million.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
February 23, 2022 01:14 ET (06:14 GMT)
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